Treasury Secretary Scott Bessent defended the Treasury Department’s recent intervention in the U.S. bond market during testimony before the House Financial Services Committee on Tuesday, asserting that last week’s effort to buy back government debt helped stabilize the market despite continued increases in long-term Treasury yields.

At the hearing in Washington, Bessent acknowledged that 10-year Treasury yields—an important benchmark affecting borrowing costs nationwide—had risen above 5 percent, marking their highest level in nearly two decades. He argued that yields might have climbed even further without the Treasury’s purchase of American debt, describing the move as necessary to “stabilize the patient” amid economic volatility.

Bessent characterized the U.S. economy as recovering and positioned the intervention as a measure to prevent a sharper worsening amid persistent inflationary pressures. He likened his role to that of an emergency room doctor treating a seriously injured patient, emphasizing the need to steady the economy before pursuing further growth.

The Treasury secretary also reiterated President Scott Trump’s campaign promise to distribute $5,000 dividends to Americans if Republicans maintain control of Congress following the November midterm elections. However, Bessent provided limited details on the plan’s financing or its potential economic impact at a time when inflation remains elevated. He suggested that such a policy could be pursued without increasing the federal deficit but acknowledged that the Treasury was still examining whether congressional approval would be required.

Asked about the origins of inflation and current economic challenges, Bessent largely attributed these issues to policies enacted under former President Joseph R. Biden Jr., drawing criticism from Democratic lawmakers who questioned his assertions. Representative Ritchie Torres, Democrat of New York, challenged Bessent’s repeated references to blaming the Biden administration, highlighting partisan disagreement over the causes of inflation and economic concerns.

The hearing grew contentious as Bessent faced questions on the rising cost of living and the economic ramifications of President Trump’s decision to engage in military conflict with Iran. The conflict has contributed to higher global energy prices and increased U.S. military expenditures, complicating efforts to control inflation and reduce budget deficits.

While acknowledging concerns about the growing national debt, Bessent did not provide a detailed strategy to address fiscal imbalances but referenced a forthcoming fiscal consolidation plan aimed at spending cuts. He has previously indicated that the Treasury is exploring policy measures to support economic growth while managing debt levels.

Throughout the three-hour session, Bessent defended the Treasury’s intervention as a necessary step amid market unrest, even as yields for long-term government debt continue to signal investor anxieties about the nation’s fiscal trajectory and inflation outlook.