Fed and Treasury appear at odds when it comes to the markets

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Treasury Secretary Scott Bessent and Federal Reserve chairman Kevin Warsh. Photo illustration: Sarah Grillo/Axios. Photos: Shawn Thew/EPA/Bloomberg and Al Drago/Bloomberg via Getty Images

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

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.

Fed and Treasury appear at odds when it comes to the markets

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