As long as Massachusetts Sen. Elizabeth Warren continues to struggle with basic economics, Treasury Secretary Scott Bessent will apparently continue to make an example of her.
On October 7, Warren, the ranking member of the Senate Banking Committee, sent Bessent a letter blasting rising 10-year Treasury yields, which had reached roughly 5.3 percent, a multidecade high. Higher yields raise borrowing costs not only for a federal government determined to keep spending money it doesn’t have, but also for American households who will find it harder to borrow for mortgages, business, and other things that affect their daily lives. Warren called the damage “self-inflicted.”
Bessent of course was quick to correct the record, and opened his scathing response by expressing disappointment that Warren had declined to follow his previous advice of taking an introductory economics course.
https://t.co/Qe7469iIbq
— Treasury Secretary Scott Bessent (@SecScottBessent) October 10, 2026
"I have received your October 7 letter, which adds to the mounting body of evidence of your complete paucity of knowledge about financial markets," Sec. Bessent wrote. "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."
Unfortunately, it is difficult to treat your concerns as sincere. 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. You blamed the economic consequences on the Federal Reserve, rather than your own irresponsible fiscal policies. Your view of the economy depends on who occupies the White House, but your woeful understanding of the issues is consistent.
The “interventions” you describe as “unprecedented” have been underway since May 2024. The buyback program has been well received by market participants in bolstering Treasury liquidity, which reduces market volatility, increases the convenience yield of Treasury securities and ensures the best value for the taxpayer. The continued enhancements optimize Treasury market liquidity in primary and secondary markets. The U.S. Treasury market’s liquidity and performance versus global peers is evidence.
Recommended
Since May 2024, the U.S. government has been buying back older Treasury bonds to make them easier for investors to sell. The logic is straightforward: investors may be more willing to lend to the government if they know they can sell their bonds when they need cash. That greater willingness could allow the government to attract buyers at lower interest rates, reducing borrowing costs for taxpayers.
Meanwhile, Bessent pointed out that Sen. Warren has opposed measures intended to let Americans keep more of what they earn. She opposed the president’s One Big Beautiful Bill, which included tax breaks for tips and overtime, along with an enhanced child tax credit. For someone so concerned about borrowing costs for American households, she seems considerably less concerned about their tax burden.
"These results are made possible by the employees of the Department of the Treasury, who are working around the clock for the American people," Sec. Bessent wrote. "Unsurprisingly, you have responded by criticizing their dedication and aptitude for the job in a recent interview.¹ Despite your malign characterization, the Domestic Finance team you alluded to in your interview is fully staffed relative to historical levels. It is ironic that you have voted against every presidential appointee for a position at Treasury, no matter how impressive the qualifications for the role. Given your newfound interest in Department personnel, I challenge you to reverse course and thoughtfully engage with future nominees and support their confirmation."
"Finally, my offer of a Foreign Exchange for Dummies tutorial still stands and if you receive a passing grade on the Yale metric, not the Harvard curve, I would be happy to also include a Fixed Income for Dummies," the Treasury Secretary wrote before adding, "Happy Indigenous Peoples’ Day in advance to you and your family."
The letter initially sent by Sen. Warren one of more than 100 letters Warren had sent to the Treasury Department in the last roughly 21 months.
Editor's Note: Do you enjoy Townhall's conservative reporting that takes on the radical Left and woke media? Support our work so that we can continue to bring you the truth.
Join Townhall VIP and use promo code FIGHT to receive 60% off your membership.