US Treasury Secretary Bessent to speak at Republican convention in Dallas
In the United States, Treasury Secretary Scott Bessent is set to speak in prime time at the Republican Party’s midterm convention in Dallas. As CNBC Top News reports, this will be the first speech by a sitting US Treasury secretary at a national political convention in 50 years.
The meeting in Dallas will be the first midterm convention held by the Republican Party. Bessent is expected to be the last government representative to speak before President Donald Trump. The program before him includes House of Representatives candidates from Arizona and Michigan.
Government bond buybacks
Bessent’s speech is scheduled against the backdrop of US Treasury actions in the government debt market. The department said it will buy back up to $6 billion in long-term Treasury bonds this week, while a limit of at least $4 billion has been set for further operations. The buyback program was launched in 2024 due to insufficient trading liquidity in some long-term securities.
Bessent, a former hedge fund trader, announced an increase in buybacks on August 19. Treasury yields temporarily declined afterward, but rose again after the volumes of the operations were disclosed. On Wednesday afternoon, the yield on 10-year Treasury bonds stood at 4.84%, the highest level during Trump’s presidency.
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Financial market confidence
Stephen Myrow, managing partner at Beacon Policy Advisors and a former adviser to Treasury Secretary Hank Paulson, said that the Treasury chief’s main asset is market confidence. In his view, if investors perceive Bessent as an official who places politics above financial stability, this could weaken his effectiveness.
Former Treasury Secretary Janet Yellen said that during Joe Biden’s presidency, she was not asked to speak at purely political events and avoided doing so because of Hatch Act restrictions on the political activity of federal officials. At the same time, the law permits certain forms of political activity if officials do not use their official status or government resources.
Other Treasury chiefs have also participated in party conventions: James Baker appeared in a video at the 1988 Republican convention, and his resignation to lead George H. W. Bush’s presidential campaign took effect that same day. Robert Rubin spoke at the 2000 Democratic convention a year after leaving his post as Treasury secretary.
