On the other hand, there was another key news that came out recently.
The US Treasury (Scott Bessent) is now stepping in to hold down long term interest rates. He recently announced that they will double how much government debt it's buying back.
In layman terms, the US government has quietly started putting a floor under the market.
It matters because this shifts control of financial conditions from the Fed to the Treasury. Pair it with Warsh eventually letting short term rates drift down, and you get a "steeper curve”, the classic setup that pumps money into the system and feeds risk assets.
It’ll be interesting to see what happens when Bessent and Warsh are on the same side. Perhaps a perfect storm!
Hope these two short pieces help you make sense of a noisy week, Have a great Sunday!
August 30, 2026 105 5
