Bessent’s political turn in GOP speech tests his credibility in the bond market

Treasury Secretary Scott Bessent’s push to calm the bond market faces a more political role as his The speech at the Republican convention raises questions about the trust he needs to manage U.S. debt markets.

Bessent’s prime-time speech at the Republican midterm convention in Dallas on Wednesday marks the first time in 50 years that a sitting Treasury secretary has addressed a national political convention.

In his speech, Bessent made sweeping claims about U.S. economic success during President Donald Trump’s second term, saying that “everything from GDP to factory jobs is growing.”

The Treasury secretary also praised Trump, adding: “No one works harder for you, no one fights harder for you, and no president has asked his team and himself to put American families back at the center of the American economy than Donald Trump.”

He also took aim at the Democratic Party, saying “they brought this country to the brink of ruin” under former President Joe Biden.

The meeting in Dallas is the first time the Republican Party has held a midterm convention. But the principles that have kept Treasury secretaries out of national conventions since Treasury Secretary William E. Simon addressed the Republican National Convention in 1976 remain the same.

“Treasury generally wouldn’t have a ton of power if it weren’t for the market’s confidence in the Treasury secretary,” said Stephen Myrow, managing partner at Beacon Policy Advisors and a former adviser to Treasury Secretary Hank Paulson. The Treasury cannot print money, but the Federal Reserve can.

Bessent was the last government official scheduled to speak to Trump, sandwiched between U.S. House candidates from Arizona and Michigan and a woman billed on the convention agenda as “an everyday American, a working mother and an economic policy advocate.”

His speech came as the Treasury Department said Wednesday it would buy up to $6 billion of long-term Treasury debt this week and cap operations at at least $4 billion later this year. The department began a buyback program in 2024 to address the well-documented problem that some long-term debt may be difficult to trade.

But the 64-year-old former hedge fund trader described the transactions in broader terms. “Fever was building in the markets,” Bessent said at an event Tuesday hosted by the conservative news organization Breitbart. He said he acted to stop it.

This intervention initially worked after Bessent announced an increase in buybacks on August 19. The news, which sent Treasury yields tumbling, came after days of headlines worrying about a global sell-off in government bonds.

But the effect was short-lived. Long-term Treasury yields rose on Wednesday after the department disclosed the size of the buyback. which was expected. 10 year treasury notes as of Wednesday afternoon, the yield was 4.84%, higher than at any point in Trump’s term. Higher yields on Treasury debt could help savers, who can earn income from holding debt, but could hobble borrowers who face higher costs on new mortgages and auto loans.

The Treasury Secretary’s role in helping manage the vast and vital government debt market makes this cabinet position particularly sensitive. The Treasury Secretary has played a critical role in stabilizing the economy during market crises such as the 2007-2008 financial crisis or the 2020 pandemic.

While all Cabinet officials are political figures to some degree—they report to and are appointed by the president-elect—some Treasury secretaries try to avoid overt politics.

“I have never been asked to speak at an overtly political event, and I have been careful not to do so to avoid violating the Hatch Act,” said former Treasury Secretary Janet Yellen, referring to the law that limits the political activities of most executive branch employees. She served under President Joe Biden until Trump took office in 2025.

The 1939 law places some restrictions on the participation of some executive branch officials in party politics, but political activity is permitted in some cases as long as the officials do not use their official title or government resources. “Other Biden appointees have spoken at political events in compliance with these rules,” Yellen said.

Other finance ministers took part in political meetings. Treasury Secretary James Baker appeared on video at the 1988 Republican National Convention. He resigned that same day to take over George H. W. Bush’s presidential campaign. Robert Rubin spoke at the 2000 Democratic National Convention, a year after he resigned as Bill Clinton’s Treasury secretary.

Bessent aggressively used his public image to harass the administration’s political opponents.

“I say that sometimes I feel like an emergency room doctor,” Bessent said at a Breitbart event on Tuesday. “The Biden economy was like Americans getting hit by a truck.” But workers are doing much better under Trump, Bessent said. The bottom 25% of workers saw greater wage growth than the top 25%, he said.

The Treasury Department did not respond to requests for comment on the political nature of Bessent’s speech on Thursday. He brushed off questions about his political ambitions beyond his current job.

Bessent is from South Carolina, home of the late Republican Sen. Lindsey Graham. On Tuesday, Bessent told Southern Methodist University students that he had responded to calls following Graham’s sudden death in July.

“They said, ‘Oh, you should run for his place,’ and I said, ‘You know what, I have a very demanding boss right now. I don’t need 5.5 million South Carolinians as a boss,” Bessent said.

Bessent is not a natural speaker. His speech is sometimes considered awkward and he tends to fall into financial jargon.

Yet Bessent has risen to the top of an administration where the president constantly evaluates his subordinates for their loyalty and aggressiveness in defending his policies, whatever they may be.

“We don’t have a typical, traditional president. So we don’t expect to have a traditional finance minister,” Myrow said.

But if markets don’t trust Bessent, perhaps because they believe he puts politics first, Bessent could get stuck in a downward spiral of escalating demands from the president and declining performance, Myrow said.

“Bessent’s real value to Trump is his credibility in the marketplace,” Myrow said. “If he ends up losing market confidence significantly, he will burn through the value he brings to Trump and the country.”

— Steve Lisman contributed to this report.

Correction: This story has been edited to reflect the fact that Treasury Secretary James Baker resigned to lead George H. W. Bush’s 1988 presidential campaign. In the previous version, the presidential candidate was incorrectly identified.