Dollar Falls, Gold Climbs as Bessent Faces Scrutiny Over Treasury Buyback Plan
Updated
Updated · POLITICO · Aug 26
Dollar Falls, Gold Climbs as Bessent Faces Scrutiny Over Treasury Buyback Plan
3 articles · Updated · POLITICO · Aug 26
Summary
Treasury’s buyback plan helped trigger a dollar drop and a rise in gold last week, a pairing investors often read as a warning sign for U.S. asset risk.
Long-term Treasury yields have also climbed, with critics arguing the market is questioning Scott Bessent’s policy credibility rather than giving him the benefit of the doubt.
That pressure is being amplified by wider forces Bessent is trying to manage at once: persistent U.S. deficits, fears Japan could sell Treasuries to support the yen, and heavy corporate borrowing tied to AI.
White House allies and Treasury officials still defend Bessent, saying global rates are rising broadly, the U.S. economy remains strong, and buybacks could eventually improve Treasury market functioning.