Scott Bessent defended the strength of the U.S. economy by pointing to robust economic activity, overseas demand for U.S. assets and the dollar’s continued dominance in international finance.
The Treasury secretary highlighted the expansion of stablecoins and the dollar’s role in global trade as evidence of continued U.S. financial influence. His remarks came as investors remain focused on higher government borrowing costs and the potential shift toward alternative international payment networks.
Bessent was challenging a recent New York Times report that raised concerns about structural pressures facing the U.S. financial system. In a post on X, he cited figures promoted by conservative commentator Lawrence Kudlow, saying the dollar remains involved in 89.2% of foreign-exchange transactions. He also noted that most stablecoins are backed by or pegged to the U.S. currency.
He pointed to domestic economic data as further evidence of resilience, including record median household income, a historically low official poverty rate and continued employment gains. Bessent also referenced the Atlanta Federal Reserve’s 5.1% annualized estimate for third-quarter GDP growth.
The comments came as the 10-year U.S. Treasury yield climbed to 5%, its highest level in years. The Treasury has been conducting buybacks of longer-maturity bonds, a policy that critics have interpreted as an attempt to limit yields. Bessent has rejected that characterization, saying the purchases are intended to improve market liquidity and help manage the maturity profile of federal debt rather than influence a Treasury market exceeding $30 trillion.
Bessent also cited Saudi Arabia’s withdrawal from mBridge, a China-backed platform for cross-border digital-currency payments, as a development favorable to the dollar. According to the Financial Times, Saudi Arabia ended its participation after completing a planned proof of concept in May 2025. The platform has continued expanding elsewhere, meaning the departure offers a symbolic point for Washington but does not indicate that the broader mBridge project is collapsing.
