Bessent Stems Long-Term Rate Climb with Currency Intervention and Support for Fed
US Treasury Secretary Scott Bessent has taken steps to ease pressure on the Treasury market after long-term rates reached a 19-year high, according to a Bloomberg report published on August 9, 2026. The moves include a US currency intervention since 1998 to support the yen and reduce the risk of Japan selling US government bonds.
Bessent has also pointed to a Federal Reserve facility that Tokyo could use in the future and defended the communication strategy of Federal Reserve Chairman Kevin Warsh.
The actions indicate Bessent is trying to use his available tools to stem the rise in long-term rates, which have been driven up by persistent inflation and nearly $2 trillion in annual budget deficits. However, JPMorgan Asset Management portfolio manager Priya Misra noted that the Fed and Treasury must be worried about the level of long-end rates.