Treasury Secretary Scott Bessent champions dollar dominance across global markets and stablecoins
Treasury Secretary Scott Bessent defended the dollar's global dominance against a New York Times report, citing its prevalence in FX transactions and stablecoin pegs, along with positive US economic indicators. He rejected accusations of suppressing Treasury yields through bond buybacks, stating they are for liquidity and maturity management. Bessent also highlighted Saudi Arabia's departure from a China-backed digital currency platform as a symbolic win for the dollar.
Why it matters
The US dollar's global standing impacts international trade, finance, and geopolitical influence, while the stability of the US economy and Treasury market affects global financial markets and investor confidence. Debates over digital currencies and stablecoins also shape the future of global finance.
Bessent pushed back against a recent report by the New York Times which outlined structural risks in the country’s financial position. He highlighted data amplified by conservative commentator Lawrence Kudlow , to emphasize the greenback’s enduring global dominance in a post on X, noting that the U.S. dollar remains on one side of 89.2% of FX transactions, while the overwhelming majority of stablecoins are pegged to USD.
Bessent also highlighted record median household income, a historically low official poverty rate, continued employment growth and the Atlanta Fed’s 5.1% annualised estimate for third-quarter GDP.
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