U.S. Treasury’s Most Interventionist Approach in Decades: Borrowing Limits Loom

U.S. Treasury Secretary John Bessent is spearheading one of the most aggressive financial policies in decades, with $1.2 trillion in new bond purchases and yen inflows marking a sharp departure from historical passivity. However, the projected $12 trillion budget deficit for 2025 could undermine the effectiveness of these measures. Bessent warns that the strategy will test the U.S. debt capacity. Markets are closely watching how this policy will impact the nation’s creditworthiness.