The Fed and Treasury Appear at Odds

“Kevin Warsh is trying to unwind years of explicit Federal Reserve guidance. Treasury Secretary Scott Bessent may have just complicated that experiment,” Axios reports.

“Why it matters: While the Federal Reserve chairman wants to give markets more room to respond to the economy, Treasury’s intervention signals that there are limits to how much market-driven movement Washington is willing to tolerate.”

“The result is a contradictory policy mix: The Fed is trying to do less to guide financial markets, just as Treasury is showing a greater willingness to intervene when market moves become uncomfortable.”

CNBC: Bessent moves to curb Treasury yields, putting new pressure on Warsh’s Fed.