Bessent Defends Economy as Bond Yields Surge and Oil Prices Rise

Treasury Secretary Scott Bessent defended the administration's economic record before the House Financial Services Committee on Tuesday, as rising bond yields and oil prices highlighted concerns about inflation and the economy's trajectory. The 10-year Treasury yield has climbed to around 5%, its highest level since 2007, while oil prices have surged above $100 per barrel, pushing gasoline and diesel costs higher for consumers. The national debt has crossed $40 trillion, and the Federal Reserve is expected to raise interest rates by a quarter point at its meeting on Wednesday. Bessent emphasized positive economic indicators, noting that the private sector has created over 1 million jobs this year, with 162,000 added in August. He highlighted that real wages are outpacing inflation and that the bottom 25 percent of wage earners are seeing larger increases. However, Democrats questioned the administration's claims, with Rep. Ayanna Pressley stating that Bessent's optimism did not align with the reality for many Americans facing high energy costs. The hearing focused on Treasury's bond market interventions, including increased buybacks aimed at stabilizing yields.