In testimony before Congress on Tuesday, Treasury Secretary Scott Bessent said he remained confident in the credibility of the US financial system, arguing that bond auctions continue to operate successfully and that the dollar is still thriving as measured by its share of global transactions.
“The US is in fact the leader, and the leader does not fear competition,” Bessent said. “Competition makes us better.”
But cracks in America’s economic dominance are starting to show.
The most glaring example has been in the bond market. Yields have been soaring as investors, nervous about the mounting national debt, demand a higher rate of return on Treasury bonds. This week, the yield on the 10-year Treasury topped 5%, reaching its highest level since 2007.
With the US’s long-term fiscal situation looking shaky, some countries are starting to wonder if the US is a wise investment….
