Bessent Says Treasury Bond Buybacks Are Not Unprecedented

Treasury Secretary Scott Bessent pushed back against Sen. Elizabeth Warren’s criticism of the Treasury’s bond buyback program, saying the initiative is an established market tool rather than an unprecedented intervention.

In a letter to Warren, Bessent said the program began in May 2024 and has been welcomed by market participants. The Treasury uses the purchases to strengthen liquidity in the U.S. government bond market, reduce volatility and improve the convenience yield of Treasury securities.

Bessent also argued that the program can help taxpayers receive better value. He criticized Warren’s understanding of financial markets and challenged her support for spending policies under the Biden administration, saying their economic effects should not be attributed solely to the Federal Reserve.

The response comes as Warren questions recent Treasury policy and its role in market conditions. Bessent also pointed to Trump administration tax measures, including exemptions for overtime and tip income, a higher senior deduction and expanded child tax credits.