WARSH – BESSENT “OUT OF SYNC”?Two of the most powerful figures in U.S. economic policy appear to be moving in different directions:
Kevin Warsh: wants markets to price yields based on economic data, reducing investors’ constant speculation over what the Fed will do next.
Scott Bessent: is taking a more active role in the bond market, increasing long-term Treasury buybacks from $2B to at least $4B per operation in an effort to ease yields.
Following the move, long-term yields cooled; gold and BTC also received support amid growing demand for scarce assets.The Fed wants markets to price themselves, while the Treasury wants to push yields lower.
@BackcomGlobal
