Bessent's bid to soothe the bond market runs into Fed ambiguity
Treasury Secretary Bessent’s attempts to calm the bond market with large-scale buybacks aren’t easing the turbulence, as investors await clearer guidance from Fed Chair Kevin Warsh on whether rates will rise and how inflation will be measured. The market reaction after the July Fed meeting was mixed—shorter-term yields slipped while longer-term yields rose— underscoring uncertainty about policy paths. Analysts say Treasury interventions have only temporary effects given the scale of the market and persistent inflation dynamics, and Warsh’s reluctance to signal a concrete plan keeps markets guessing ahead of his Jackson Hole speech. In short, the Fed’s stance and inflation outlook, not Treasury purchases, are driving the ongoing volatility.
