Treasury Secretary Grilled Over Global Financial Instability Concerns
The US Treasury Department's Secretary, Scott Bessent, will face questioning from Congress about the current state of global financial instability. The hearing comes as the global selloff of government bonds has intensified, with multiple risks emerging in the system.
A recent market volatility surge saw US stocks soften on September 9, yields climb, and the dollar weaken due to traders assessing Federal Reserve policy and Brazil's monetary decisions. The broader backdrop includes a global selloff of government bonds that has reflected various concerns.
The Financial Stability Board published its Annual Financial Report for 2025-26 on September 4, highlighting emerging risks such as frontier artificial intelligence's impact on cyber risk. FSB Chair Andrew Bailey identified this as the most immediate concern to the financial system.