Bessent Expanding U.S. Treasury Buybacks Is "Playing with Fire"! Brookings Institution: U.S. May Repeat Japan-Style Currency Depreciation

Robin Brooks, a senior fellow at the Brookings Institution, warned that the U.S. Treasury's expansion of long-term Treasury buybacks and active management of bond supply to lower financing costs are raising market concerns. Japan previously used large-scale bond purchases to suppress financing costs, accompanied by a prolonged weakening of the yen. The U.S. may be heading down a similar path of currency depreciation, with the dollar under pressure and gold strengthening, as markets focus on policy signals from Warsh at the Jackson Hole symposium.