Bessent Faces Congressional Grilling Amid Rising Bond Yields
Treasury Secretary Scott Bessent appeared before the House Financial Services Committee on Tuesday to discuss the International Monetary Fund and other economic issues. In prepared remarks, Bessent highlighted the success of sanctions on Iran, which he claims has led to wage gains for lower-income workers.
He also pointed out that over 64 million tax returns have claimed a tax cut passed last year. Oil prices have climbed above $100 a barrel due to the intensified conflict in Iran, causing gas prices to average $4.32 per gallon and diesel costs to reach $6.23 per gallon.
The consumer price index has risen 3.4% from a year ago, leading investors to bet on a Federal Reserve rate hike. President Trump has publicly pushed for rate cuts, but Bessent meets with Fed Chair Kevin Warsh weekly.
Bessent's prepared testimony noted the growth of wages for lower-income workers, but critics argue that his efforts to artificially suppress bond yields have backfired. The 10-year Treasury yield briefly touched 5% on Monday, its highest level in three years.