“BACK TO SCHOOL, SENATOR!”: Bessent Mocks Warren’s Economic Knowledge, Takes Jab at Her Native American Heritage Claims
Treasury Secretary Scott Bessent has fired back at Sen. Elizabeth Warren with a sharply worded letter ridiculing her understanding of financial markets and concluding with a handwritten greeting referencing her past claims of Native American ancestry.
The response, sent yesterday and obtained by FOX Business, followed Warren’s latest demand for information about rising Treasury yields and borrowing costs. Bessent used the exchange to criticize the Massachusetts Democrat’s economic record, accuse her of political grandstanding, and suggest that she needed remedial instruction in finance.
At the bottom of the letter, Bessent added a handwritten message: “Happy Indigenous People’s Day in advance to you and your family,” an unmistakable reference to the controversy surrounding Warren’s previous identification as Native American.
The exchange marks another escalation in the increasingly personal dispute between the Treasury secretary and Warren, who has repeatedly questioned the Trump administration’s economic policies and demanded detailed explanations from the department.
According to the report, Warren has sent Treasury officials more than 100 letters seeking information over the past 21 months. Bessent portrayed the latest correspondence as part of a sustained campaign against the administration rather than a serious attempt to understand developments in the bond market.
“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,” he wrote.
The confrontation began with an October 7 letter in which Warren questioned the administration’s response to the rising yield on 10-year Treasury securities, a benchmark that influences borrowing costs throughout the American economy, including mortgage rates and other forms of credit.
Warren sought details about the steps Treasury officials were taking to make borrowing more affordable for ordinary Americans and requested written answers by October 21.
In her correspondence, the senator blamed the administration’s policies for contributing to higher interest rates and argued that the recent increase in government bond yields was the result of avoidable economic decisions.
“The surge in Treasury yields is self-inflicted and follows the Fed’s decision to raise the federal funds rate by a quarter of a percentage point, driven by concerns about inflation.”
Bessent disputed Warren’s account of the economic situation and questioned why she had not expressed similar concerns about government spending and inflation during President Joe Biden’s administration.
“It is difficult to treat your concern as sincere,” Bessent wrote, before accusing Warren of supporting policies that contributed to the inflation and interest-rate increases experienced during the previous administration.
“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.”
He further accused Warren of directing criticism toward the Federal Reserve when interest rates rose under Biden, rather than acknowledging what he described as the consequences of “your own irresponsible fiscal policies.”
The Treasury secretary also defended President Trump’s tax legislation, contrasting the administration’s approach with Warren’s support for higher taxes.
“While you voted for a $5 trillion tax hike on every day Americans, the Working Families Tax Cuts continue to deliver for families and workers across the country,” he wrote.
Warren, however, argued that the tax provisions in Trump’s One Big Beautiful Bill would substantially increase federal borrowing while disproportionately benefiting wealthy Americans and large corporations.
According to her letter, the legislation is projected to add $4.7 trillion to the national debt over the next decade, with benefits flowing primarily to the “ultra-wealthy and large corporations — while cutting health care and food assistance for families. Meanwhile, the Iran war has cost taxpayers an estimated $43.6 billion to date, according to the Pentagon.”
The competing claims reflect a broader disagreement over the effects of the administration’s tax and spending policies. Warren maintains that the legislation will deepen federal deficits and increase financial pressure on working families, while Bessent argues that its tax provisions are supporting workers and economic growth.
Bessent’s response became particularly pointed near its conclusion, when he offered to provide Warren with educational materials on subjects he suggested she had failed to master.
He proposed “a Foreign Exchange for Dummies tutorial,” followed by another lesson if the senator successfully completed the first.
“if you receive a passing grade to the Yale metric, not the Harvard curve, I would be happy to also include a Fixed Income for Dummies.”
The reference to the two Ivy League institutions carried an additional personal element. Warren previously taught law at Harvard University, while Bessent served as an instructor in economic history at Yale.
The Treasury secretary’s closing greeting about Indigenous Peoples’ Day revived a controversy that followed Warren for years, particularly during her presidential campaign.
Warren faced sustained criticism over her earlier claims of Native American heritage, which she said were based on stories passed down through her family. Before entering the Senate, she had identified herself as an “American Indian” or a minority in certain professional records.
President Trump repeatedly mocked those claims, referring to Warren as “Pocahontas,” a nickname that became a recurring feature of his political attacks against her.
In 2018, Warren released the results of a DNA test intended to demonstrate that she had distant Indigenous ancestry. The move prompted objections from tribal representatives, who emphasized that genetic testing does not establish membership in a Native American tribe or determine tribal identity.
Warren subsequently apologized to several tribes for taking the test and acknowledged their objections to her approach.
The dispute over Treasury yields comes amid growing concern about the cost of borrowing in the United States. The benchmark 10-year Treasury yield recently climbed above 5.2 percent, reaching levels not seen in more than two decades and contributing to higher financing costs for homeowners, businesses and the federal government.
Warren has also challenged the Treasury Department’s expanded bond-buyback operations, arguing that the administration’s purchases of older government securities have failed to prevent yields from rising. In her October 7 letter, she cited multibillion-dollar buybacks conducted in September and October and questioned whether additional intervention was being considered.
Bessent responded that the buyback program began in May 2024, during the Biden administration, and defended it as a mechanism for improving liquidity in the Treasury market rather than an effort to dictate interest rates. He maintained that the program had received a favorable response from market participants.
The secretary also highlighted tax benefits claimed by millions of Americans under the administration’s legislation, including provisions affecting overtime income, tips, senior citizens and families with children.
The latest confrontation follows earlier public exchanges between Bessent and Warren over the Treasury Department’s handling of foreign exchange markets and the broader direction of economic policy. In August, Bessent had already offered Warren a tutorial on currency markets, an invitation he revived in yesterday’s letter.
Warren has separately promoted a Trumpflation Tracker intended to measure the cumulative effect of rising prices on American households. Bessent challenged the methodology yesterday, accusing the senator of selectively presenting inflation and wage figures to portray the administration’s economic record unfavorably.
The two remain sharply divided over the causes of rising borrowing costs, the effectiveness of Treasury’s market operations and the impact of Trump’s tax policies. Warren has requested a formal response to her latest questions by October 21.
{Matzav.com}
