US Treasury Secretary Bessent Rebuts Warren: Treasury Buyback Program Is Not "Unprecedented"

U.S. Treasury Secretary Bessent wrote to Senator Elizabeth Warren in response to her questions regarding Treasury-related policies, noting that her understanding of the financial markets is "lacking a factual basis," and criticizing her previous support for the Biden administration’s spending policies while attributing economic consequences to the Federal Reserve rather than fiscal policy. In response to Warren’s claim that recent U.S. “interventions are unprecedented,” Bessent stated in the letter that the relevant Treasury repo program has been in operation since May 2024 and has been welcomed by market participants. The program aims to enhance liquidity in the U.S. Treasury market, reduce market volatility, improve the Treasury convenience yield, and deliver greater value to taxpayers. Tax policies driven by the Trump administration are currently benefiting households and workers, including tax exemptions for overtime and tip income, an additional deduction for seniors, and the child tax credit.