Warsh's Words Fall on Deaf Ears as Treasury Doubles Down

Kevin Warsh, Chairman of the Federal Reserve, has been trying to shift attention from himself to market data. However, his message seems to have fallen on deaf ears, particularly for Scott Bessent. Just a week after Warsh's comments, Treasury Secretary doubled the ceiling on long-bond buybacks to $4 billion. This move is seen as an attempt to push down long-term yields.

This action has been met with criticism from some quarters. Evercore ISI's Krishna Guha described it as 'activist Treasury policy' that is just as impactful as central bank policy. It appears that two officials within the same government are pulling in opposite directions, creating uncertainty and confusion in the market.