Treasury Secretary Scott Bessent used stablecoin adoption, foreign-exchange activity and domestic economic data to argue that the U.S. economy remains resilient despite growing concerns about government debt and rising Treasury yields.
Bessent was responding to a recent New York Times report that raised concerns about longer-term weaknesses in the U.S. financial position. In a post on X, he cited figures highlighted by conservative commentator Lawrence Kudlow, noting that the dollar is involved in 89.2% of global foreign-exchange transactions. He also emphasized that the vast majority of stablecoins maintain their peg to the U.S. dollar.
Beyond the currency market, Bessent pointed to several indicators of economic strength. These included record median household income, a historically low official poverty rate, continued gains in employment and the Atlanta Fed’s 5.1% annualized GDP growth estimate for the third quarter.
Bessent’s comments come as Treasury yields have climbed to multiyear highs, with the 10-year yield reaching 5%. The Treasury has also continued its program of repurchasing longer-term government bonds. Critics have argued that the purchases could be intended to hold down borrowing costs, but Bessent has disputed that view, saying the transactions are focused on improving liquidity and managing the government’s debt maturity profile rather than controlling the more than $30 trillion Treasury market.
The Treasury secretary also referenced Saudi Arabia’s departure from mBridge, a China-backed initiative designed to facilitate cross-border digital-currency payments. Citing the Financial Times, Bessent presented the development as supportive of the dollar’s position in global finance.
Saudi Arabia, however, said its participation ended after it completed a planned proof of concept in May 2025. Since mBridge remains active and continues to develop in other areas, the withdrawal represents a symbolic boost for Washington rather than clear evidence that the wider initiative is failing.
