What to watch as Treasury Secretary Scott Bessent testifies before Congress

What to watch as Treasury Secretary Scott Bessent testifies before Congress. Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuKey PointsDemocrats used a scheduled appearance by Treasury Secretary Scott Bessent to criticize the administration's management of the economy.

What happened

Treasury Secretary Scott Bessent may face questions on rising energy prices, Federal Reserve policy, government debt and the Trump team's economic agenda. With the midterm election just weeks away, Democrats laced into Treasury Secretary Scott Bessent in a combative House hearing Tuesday. Treasury Secretary Scott Bessent attends a House Financial Services Committee hearing on the state of the international financial system, on Capitol Hill in Washington, D. Bessent defended Treasury bond-market buybacks, saying yields would have been higher without intervention.

"Bessent said he is working on deficit-reduction plans, which would ease Treasury yields. Bessent hit back in a series of combative engages with Democrats. Republicans used their time to let Bessent expand on his defenses at length.

The wider picture

Bessent presented a spirited defense of Trump's economic record in his testimony, which was formally scheduled as part of International Monetary Fund oversight but rapidly devolved into a free-for-all about partisan views of the economy. Bessent was frequently interrupted not by just Democrats, who insisted he answer yes or no questions on a range of issues, but also by a group of protestors who objected to U. The 10-year Treasury note traded at 5% midday Tuesday.

Maxine Waters, the ranking Democrat on the committee, told Bessent. What happens if Warsh waversHassett kept up to $5 million Coinbase stake as Trump reshaped crypto policyTrump's energy holdings have surged as the Iran war moved oil marketsBessent attempted to respond at length, but Waters, of California, held up her hand and said she was reclaiming her time. Annabelle Gordon | ReutersBessent defended his management of the U. Treasury market during questioning by other lawmakers. The Treasury Department increased its purchases of certain long-dated Treasury bonds that it sees as mispriced.

What has been reported

Bessent disagreed, saying bond yields would be yet higher had the department not intervened. "And then we proceeded to have two of most successful bond Treasury auctions that we've had in 20 years. "I believe that the 10-year yield reflects many things, but the need to address the deficit is one of those," Bessent said. Bessent has been a full-throated supporter of the war. Bessent on Tuesday suggested Chinese companies are a greater threat than U.

"Kimi had a breach and sent Chinese weapons plans back to Anthropic," Bessent said Tuesday, speaking about the first known example of a Chinese AI model being involved in a breach. Anthropic didn't immediately respond to a request for comment about Bessent's remarks. Bessent declined to specify any particular draft regulations or bills he believed would improve AI safety, but he indicated he supported arguments made by critics of large AI labs such as Anthropic.

What happens next

"I can tell you what we shouldn't do on safety is give these labs a liability exemption, which is what they're asking for," Bessent said. We can't let these large labs capture — have regulatory capture," Bessent added. Bessent and House Republicans emphasized positive aspects of the Trump economy. Bessent said wages for the bottom 25% of earners have risen faster than the top group of earners. As the hearing came to a close, Bessent acknowledged the tough nature of the appearance.

AI security and competition with China emerged as another major topic during the hearing. They sought to paint him as covering for President Donald Trump in the face of high energy prices and rising interest costs on consumer debt.