PremiumBy Michael Ball, Bloomberg Markets Live reporter and strategistThe Treasury’s expanded long-end buyback plans have raised the stakes for Fed Chairman Kevin Warsh at Jackson Hole, as widening fiscal deficits, surging AI-related issuance and doubts over the Fed’s inflation-fighting credibility threaten to further destabilize the long end, something that could upend risk sentiment more broadly.
Warsh and Bessent Need to Regain the Policy High Ground
Bessent and Warsh may eventually forge a new Fed-Treasury accord, but they first need to regain the policy high ground or markets will keep adjusting to higher US fiscal and monetary policy uncertainty.
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