US Treasury Secretary Scott Bessent supports the $5,000 check proposal, stating it would not increase the deficit; 10-year US Treasury yield rises above 5% to a near 20-year high.
U.S. Treasury Secretary Scott Bessent testified before Congress on Tuesday, expressing support for a proposal to issue $5,000 checks to American adults. He downplayed concerns about the fiscal cost, stating there are "ways" to implement the plan without increasing the deficit, but did not disclose specific cost offset solutions. House Speaker Mike Johnson said it would "take some time" for the plan to materialize and that specific details are "not yet finalized." The proposal is estimated to cost over $1 trillion, while the U.S. fiscal deficit for this year is already close to $2 trillion. Meanwhile, the 10-year U.S. government bond yield once again surpassed 5% on Tuesday, reaching a new high in nearly two decades, driven by a surge in capital investment and soaring energy prices, leading to a massive sell-off in global bonds.
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