Bessent's Treasury Maintains Yellen's Long-Term Debt Strategy

Treasury Secretary Scott Bessent reaffirmed the U.S. administration's commitment to a strong dollar policy, emphasizing that the goal is to prevent other countries from manipulating their currencies. In an interview, he stated that the strong-dollar policy remains intact under President Trump, despite previous criticisms that it could hinder U.S. exports. Concurrently, the U.S. Treasury announced plans to maintain its issuance strategy of long-term debt through 2025, keeping auction sizes consistent with those of prior quarters. Bessent's approach aligns with former Secretary Janet Yellen's agenda, which some Republican critics argued was aimed at suppressing borrowing costs ahead of elections. The Treasury will conduct auctions totaling $125 billion next week, with the auction sizes reflecting current projected borrowing needs. Bessent's administration faces scrutiny regarding the balance of managing debt issuance and maintaining economic stability.