Why It Matters
The global financial system is sending mixed signals, and Treasury Secretary Scott Bessent will take questions from Congress about what it all means. A global selloff of government bonds has surfaced multiple risks, while Federal Reserve officials have made conflicting public statements about inflation and monetary policy that have roiled markets. The hearing will give lawmakers a chance to press the administration on how it plans to navigate these crosscurrents, and whether the Treasury Department sees the instability as a temporary market correction or a sign of deeper structural problems.
The Hearing
The House Financial Services Committee will hold a hearing titled "The Annual Testimony Of The Secretary Of The Treasury On The State Of The International Financial System" on September 15. Rep. Maxine Waters (D-CA-43) is the Ranking Member of the House Committee on Financial Services, and Rep. Bill Huizenga (R-MI-4) is the Vice Chair of the House Committee on Financial Services.
Context
Market volatility has intensified in recent days. On September 9, US stocks softened, yields climbed, and the dollar weakened as traders assessed Federal Reserve policy and Brazil's monetary decisions. The broader backdrop includes a global selloff of government bonds that has reflected multiple risks in the global financial system. Comments from Federal Reserve official Waller contributed to a decline in US bond yields and the value of the US dollar, and New York Federal Reserve Bank President John Williams made comments suggesting that inflation is being tamed.
Financial regulators have also flagged emerging risks. FSB Chair Andrew Bailey identified frontier artificial intelligence's impact on cyber risk as the most immediate concern to the financial system. The Financial Stability Board published its Annual Financial Report for 2025–26 on September 4.
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