Treasury Secretary Bessent Rejects AI Liability Shield, Defends Bond Buybacks as 10-Year Yield Tops 5%

Treasury Secretary Scott Bessent said on Sept. 21 that artificial intelligence developers should not expect a federal liability shield, telling CNBC that "it is humans who are responsible, not the AI," and that AI companies "need to take responsibility for themselves." Bessent also defended the Treasury's buyback program for long-dated securities. The 10-year Treasury yield climbed above 5% last week for the first time since 2007, roughly 100 basis points above levels seen when U.S.-Israel-Iran hostilities began in late February. Home loan rates rose above 7% this month. He stood by the Sept. 10 purchase of more than $5 billion in 10-year and 20-year Treasuries, calling it "successful" at a Sept. 15 House Financial Services Committee hearing. The FOMC voted Sept. 16 to raise its benchmark rate target to 3.75%-4%, the first hike since 2023. Bessent's weekend meetings included talks with Chinese Vice Premier He Lifeng ahead of a Trump-Xi summit this week.