Bessent Challenges Warren Over Treasury Yield Concerns

Treasury Secretary Scott Bessent responded to Sen. Elizabeth Warren's questions about rising 10-year Treasury yields, after the Massachusetts Democrat asked what the Trump Administration is doing to lower borrowing costs for Americans. FOX Business reported it exclusively obtained Bessent's Saturday letter.

Warren sent her letter on Oct. 7 and requested responses by Oct. 21. The senator has sent more than 100 letters to the Treasury Department seeking information during the past 21 months.

In his response, Bessent criticized Warren's understanding of financial markets and challenged her characterization of the causes behind higher Treasury yields.

"Rather than take my suggestion of studying introductory economics, you have continued your letter-writing crusade and participation in tabloid fodder about the Treasury Department." said Scott Bessent, Treasury Secretary.

Bessent said Warren had previously supported Biden Administration spending policies during periods of higher interest rates and inflation. He also referenced a dispute over tax policy and the impact of recent legislation.

"It is difficult to treat your concern as sincere," said Scott Bessent, Treasury Secretary.

"As the federal funds rate climbed from near zero to its highest level in 22 years, with inflation hitting a 40-year high, you were a cheerleader for the Biden Administration's reckless spending." said Scott Bessent, Treasury Secretary.

Bessent continued by arguing that economic consequences were attributed to the Federal Reserve rather than fiscal policies. He also discussed tax legislation in his response.

"your own irresponsible fiscal policies." said Scott Bessent, Treasury Secretary.

"While you voted for a $5 trillion tax hike on every day Americans, the Working Families Tax Cuts continue to deliver for families and workers across the country," said Scott Bessent, Treasury Secretary.

Warren's letter argued that the One Big Beautiful Bill would add $4.7 trillion to the national debt over a decade and benefit the ultra-wealthy and large corporations while reducing health care and food assistance for families.

"The surge in Treasury yields is self-inflicted and follows the Fed's decision to raise the federal funds rate by a quarter of a percentage point, driven by concerns about inflation." said Sen. Elizabeth Warren, D-Mass.

Warren also cited Pentagon figures regarding costs associated with the Iran war in her letter while criticizing the administration's fiscal decisions.

"ultra-wealthy and large corporations — while cutting health care and food assistance for families. Meanwhile the Iran war has cost taxpayers an estimated $43.6 billion to date, according to the Pentagon." said Sen. Elizabeth Warren, D-Mass.

Bessent ended his letter with a reference to his and Warren's academic backgrounds, noting that Warren was a former Harvard Law professor and he previously taught economic history at Yale.

"a Foreign Exchange for Dummies tutorial," said Scott Bessent, Treasury Secretary.

"if you receive a passing grade to the Yale metric, not the Harvard curve, I would be happy to also include a Fixed Income for Dummies." said Scott Bessent, Treasury Secretary.

Bessent signed the letter with a handwritten note wishing Senator Warren a Happy Indigenous Peoples' Day.