U.S. Treasury Secretary Scott Bessent said Tuesday he intends to wield the balance sheet of the United States as an instrument of foreign policy, drawing a direct line between economic statecraft and expanding American influence across the Western hemisphere.
Speaking at the SMU Cox School of Business, Bessent pointed to the Trump administration's multibillion-dollar support package for Argentina as a model. "Argentina was the front-runner for that and it was my belief that the Milei government had sound policies," he said, referring to President Javier Milei's government.
Bessent also referenced the July 31 joint yen-buying intervention with Japan — a rare coordinated action aimed at preventing a selloff in the yen and Japanese government bonds from spilling into global markets. "When we intervened with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policy makers are going to do," he said.
According to the Financial Times, Bessent cautioned market participants about his information advantage: "I have asymmetric information. I am the house now," he said. "You can bet against me if you want."
The remarks came as Treasury actions to influence long-term borrowing costs appear to be losing traction. Despite the government announcing upsized buyback operations for long-dated Treasuries on Wednesday, the yield on the 30-year bond climbed to its highest level since 2007, with the 10-year yield also rising sharply.
The pressures on long-end rates feed directly into housing costs. The Mortgage Bankers Association reported Wednesday that the average rate on a 30-year mortgage reached 6.85% for the week ended September 4 — the highest reading since June 2025.
Bessent's statements underscored the Trump administration's willingness to deploy U.S. financial resources to shape foreign economies and politics. The administration has sought to sway political contests in Latin America and expanded U.S. military presence in the region, including ordering the seizure of ousted Venezuelan leader Nicolas Maduro during a deadly raid and carrying out multiple Caribbean boat strikes that left dozens dead. Rights advocates have characterized those actions as imperialist extrajudicial killings; Trump has defended them as necessary measures to advance U.S. interests and combat drug trafficking and illegal immigration.
On currency markets, the yen reached a seven-month high on Wednesday, pressured by dollar weakness and developments in the Middle East war.
