U.S. Treasury Secretary Scott Bessent champions the dollar's dominance in global markets and stablecoins, refuting pessimistic assessments of the U.S. economy.
Scott Bessent highlighted the strong growth of the U.S. economy, foreign demand for U.S. assets, and the continued dominance of the dollar to counter the New York Times report's assessment of structural risks to U.S. financial conditions. He noted that the dollar still accounts for 89.2% of global foreign exchange transactions, and the vast majority of stablecoins are pegged to the dollar. He also mentioned record median household income, historically low poverty rates, sustained job growth, and the Atlanta Fed's annualized GDP estimate of 5.1% for the third quarter. Furthermore, Bessent cited Saudi Arabia's withdrawal from the China-backed cross-border digital currency platform mBridge as supporting evidence for the dollar's dominance. He reiterated that the Treasury's long-term bond buybacks are aimed at improving liquidity and managing the maturity structure, not suppressing yields.
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