Treasury Secretary Scott Bessent, a billionaire hedge fund manager, has taken charge of President Donald Trump’s effort to pressure Iran through economic measures after a six‑month bombing campaign failed, while the national debt exceeds $40 trillion and long‑dated Treasury yields have risen to levels not seen in two decades.

Bessent was confirmed by the Senate in August 2025 with a 68‑to‑29 vote, becoming the first openly gay Treasury secretary in U.S. history. He previously worked at George Soros’s fund, helped execute the 1992 bet against the pound, and has shifted from Democratic donor to a supporter of Trump’s economic nationalism.

The Treasury’s quarterly buyback program for 10‑ to 30‑year bonds was doubled last week, with each operation now targeting at least $4 billion to support liquidity in a thin August market. Yields on long‑dated bonds climbed to their highest point in nearly 20 years, raising the cost of servicing the $40 trillion debt. Bessent briefly intervened in the Japanese yen market, the first such action in 15 years, to support currency stability. Analysts say the buybacks provide only a short‑term fix and may rely on the Treasury General Account, leaving the underlying funding gap unaddressed.

On Iran, Bessent announced “Operation Economic Outcast,” a plan to isolate Tehran from the global financial system, but no secondary sanctions have been imposed on major trading partners. Implementing full secondary sanctions would require targeting Chinese state‑owned banks, a step that could trigger a trade conflict between the United States and China.

Trump has announced 50% tariffs on $20 billion of Canadian goods, and Canada has retaliated with matching tariffs on $20 billion of U.S. products, including steel, dairy, appliances and farm equipment. Bessent previously described tariffs as a useful tool for foreign policy and said he has evolved on the issue, supporting the president’s actions.

Critics, including former political strategist Steve Schmidt, have labeled Bessent incompetent and dishonest, while others argue his policies have failed to curb rising debt costs or to produce tangible results. Financial analysts describe the bond buyback as a “band‑aid on a bullet hole,” suggesting the measures are insufficient to satisfy market forces. The coming months will reveal whether Bessent can balance debt reduction, market stability and foreign economic pressure, or whether his role will further erode confidence in the Treasury.