Treasury Secretary Scott Bessent Defends Economy During House Testimony

Treasury Secretary Scott Bessent testified before the House Financial Services Committee on September 15, 2026, to discuss the state of the U.S. financial system and the International Monetary Fund. Bessent defended the Trump administration's economic record, highlighting the success of an economic isolation campaign against Iran and reporting wage growth for the bottom 25% of earners. He also defended a recent bond market intervention, claiming a $10 billion operation to lower 10-year Treasury yields was successful, though the yield reached a 20-year high of 5.04% during the proceedings.

Democratic committee members, including Representative Maxine Waters, challenged Bessent on a national debt exceeding $40 trillion, a trade war with Canada, and rising fuel prices caused by the closure of the Strait of Hormuz. Waters criticized the administration's "reckless" policies, arguing they have increased costs for groceries and healthcare. Bessent attributed the surge in bond yields to global issues and higher oil prices, while also mentioning private discussions with China regarding Iranian financial links ahead of a summit between President Donald Trump and President Xi Jinping.

The testimony occurred as the Federal Reserve, led by Chair Kevin Warsh, faced pressure to raise interest rates by a quarter percentage point to combat persistent inflation. Additionally, Bessent addressed a proposal to provide every adult citizen $5,000 if Republicans maintain congressional control in November, asserting the plan could be executed without increasing the national debt.