Bessent Is Wrong About Banks Saving Treasuries: Paul J. Davies

When senior politicians start talking about technicalities of obscure financial regulations on mainstream TV you can be sure something is up. Treasury Secretary Scott Bessent did just that in the middle of the US bond market selloff last Wednesday, a few hours before President Trump postponed most of his Liberation Day tariffs.

Bessent was talking to Maria Bartiromo on Fox Business Wednesday morning when he bought up plans for deregulation, claiming they’d be very powerful. “Part of the deregulation that’s coming in the banking industry will be changing what’s called the Supplementary Leverage Ratio, which will allow banks to buy more Treasuries without ...