Paulson Calls for ‘Break‑the‑Glass’ Treasury Plan
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- Paulson warned that a collapse in Treasury demand could trigger a crisis and urged policymakers to prepare an emergency plan.
- Emergency plan should be “break‑the‑glass”, targeted, short‑term, and ready to deploy when the market hits the wall, Paulson said.
- Bloomberg Television aired Paulson’s interview on its Wall Street Week program on Thursday.
- Article was first published on April 16, 2026 and updated the following day.
Why it matters: A sudden drop in Treasury demand would destabilize the government bond market, triggering severe consequences across the economy. Paulson urged a rapid, targeted emergency plan to be ready when the market hits the wall, serving as a short‑term liquidity backstop to cushion market dislocation.
