Bessent Defends Trump Economy at House Hearing as 10-Year Treasury Yield Hits 5%
Updated
Updated · CNBC · Sep 15
Bessent Defends Trump Economy at House Hearing as 10-Year Treasury Yield Hits 5%
3 articles · Updated · CNBC · Sep 15
Summary
Scott Bessent’s annual House testimony turned combative as protesters and Rep. Maxine Waters repeatedly interrupted him while he defended Trump’s economic record.
Bessent argued the economy’s strength underpins the administration’s pressure campaign on Iran, while Democrats pointed to a Treasury selloff, $100-plus oil and higher consumer costs.
Market strains framed the hearing: the 10-year Treasury traded at 5%, average U.S. gasoline reached $4.32 a gallon and 30-year mortgage rates topped 7% last week.
On policy, Bessent said Chinese AI firms pose a bigger threat than U.S. companies and cited an alleged breach involving Kimi and Anthropic.
The hearing also spotlighted broader vulnerabilities in Trump’s economy, with CPI up 3.4%, debt above $40 trillion and investors betting the Fed will raise rates.
As global conflict pushes Treasury yields to 19-year highs, can any financial tool truly shield consumers from the soaring costs of war?
Will the Treasury’s multi-billion dollar debt buybacks actually calm markets, or quietly trigger widespread investor panic over the $40 trillion debt?
Could the alarming 5 percent yield threshold secretly signal an upcoming economic boom rather than the catastrophic financial crisis everyone fears?
The 5% Treasury Yield Crisis: Debt, Inflation, and the 2026 Financial Shockwave
Overview
In September 2026, U.S. Treasury yields surged past 5% after months of pressure from war in Iran, high inflation, rising oil prices, tariffs, and heavy tech borrowing for AI. This spike raised the hurdle rate for stocks, slashed high-growth valuations, and froze the housing market as mortgage rates jumped. Treasury buybacks failed to calm markets, as the government’s massive $40 trillion debt and $1 trillion annual interest bill crowded out private investment, pushing borrowing costs even higher. Investor confidence was shaken further by costly political proposals, while new financial tools like stablecoins quietly absorbed government debt, highlighting deep systemic risks.