US Treasury Secretary Defended Government Bond Buyback Program

Published: October 11, 2026 – 06:43 UTC

Scott Bessent responded to a letter from Elizabeth Warren about US Treasury buybacks.
The Treasury secretary called the senator’s criticism unfounded and suggested she take a course on the FX market.
He also laid out arguments in defense of Trump’s policies.

US Treasury Secretary Scott Bessent published a response to Senator Elizabeth Warren, in which he defended the Treasury buyback program and the tax policy of Donald Trump’s administration. In the letter addressed to the senator, he also criticized her economic views and suggested she take training on the FX market and fixed-income instruments.

https://t.co/Qe7469iIbq
— Treasury Secretary Scott Bessent (@SecScottBessent) October 10, 2026

Bessent Defended the US Treasury Buyback Program

In response to Warren’s October 7, 2026, letter, Bessent said her criticism showed an insufficient understanding of financial markets. According to him, the “unprecedented” market interventions described by the senator have, in fact, been ongoing since May 2024.

The secretary stressed that the Treasury buyback program is viewed positively by market participants because it helps:

Increase liquidity in Treasury securities
Reduce market volatility
Increase the benefits of holding Treasury securities
Deliver the best value for taxpayers

Bessent also noted that further improvements to the program will optimize liquidity in both primary and secondary markets. He said that liquidity and the performance of the US Treasury market compared with international peers confirm the effectiveness of these measures.

Separately, the secretary criticized Warren’s stance on the previous administration’s fiscal policy. He accused the senator of backing excessive spending by Joe Biden’s administration, despite inflation rising to its highest level in 40 years and the federal funds rate climbing to a 22-year high.

The Secretary Cited Data on Tax Breaks and Criticized Warren

Bessent also defended the Trump administration’s tax initiatives, saying they benefit American families and workers. According to him, during the most recent tax season:

The average tax refund exceeded $3,400 — up 11% from a year earlier
Over 30 million workers used the overtime tax break
More than 7 million received a tax break on tips
Over 37 million seniors benefited from an increased tax deduction
More than 34 million families received an expanded child tax credit

In addition, Bessent said the Treasury Department’s finance unit is staffed in line with historical benchmarks, and urged Warren to support the nominations of the agency’s future appointees.

At the end of the letter, he reiterated an offer to give the senator a crash course on the FX market (“Foreign Exchange for Dummies”). If she passes the relevant test under Yale University’s standards — rather than Harvard’s more lenient system — Bessent promised to add a course on fixed-income instruments (“Fixed Income for Dummies”).

As a reminder, regular buybacks of long-term US Treasuries have drawn attention from crypto market participants due to their potential impact on liquidity and risk-asset prices. In particular, macro strategist Mark Connors suggested that this mechanism could create more favorable conditions for bitcoin to rise to $180,000, especially if banking restrictions are eased.

At the same time, the effectiveness of such measures remains a subject of debate: in September 2026, the US Treasury conducted a buyback of bonds worth about $5.2 billion, but it did not stop yields from rising. Investors continued to price in inflation risks, the budget deficit, and the outlook for the Federal Reserve’s monetary policy.

For his part, American economist Peter Schiff warned that rising Treasury yields despite attempts to support the market may signal deepening US debt problems. Against this backdrop, Treasury Secretary Scott Bessent’s defense of the buyback program comes amid ongoing debate over its effectiveness and its impact on financial markets.

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Source: Incrypted