United States (US) Treasury Secretary Scott Bessent said on Thursday that the Treasury could increase bond buybacks beyond $4 billion, partly to signal that current yields do not reflect underlying economic fundamentals.
He stressed that interest rates have nothing to do with the buyback decision
On fiscal policy, Bessent said there is a very good chance that the US deficit has already peaked and indicated that the administration will likely increase its focus on fiscal consolidation. He also played down the $40 trillion debt threshold and expects tariff revenues in 2026 to remain similar to 2025 levels. Bessent added that the Treasury and the Federal Reserve (Fed) would coordinate in the event of changes to the central bank’s balance sheet.
On inflation, he noted that market indicators point to lower price pressures ahead. Key takeaways Buyback could be more than 4 billion. Part of it is signaling.