Warsh Is Driving Treasuries Market, Whether He Wants to or Not

Live updates

1. 3h ago

   Global Bond Selloff Deepens Amid Inflation and Geopolitical Risks

   Global bonds sold off sharply on Wednesday, September 2, driving borrowing costs toward multi-decade highs. This market rout stems from rising oil prices and conflict in the Middle East, alongside persistent inflation risks. Investors are reacting to a lack of deficit reduction and geopolitical stability following the latest G-20 meetings. While government debt values fall, other assets are becoming more expensive. These conditions create a yield trap for average investors as surging Treasury yields combine with tech fatigue and geopolitical inflation.

   Why it matters

   Treasury Secretary Scott Bessent has intervened in currency and bond markets following the collapse of the Japanese carry trade. This volatility occurs as the market weighs the influence of Kevin Warsh's Fed plans against Bessent's strategies. The struggle between the Treasury and the Fed over rate setting remains a central tension in the bond market.

   What is confirmed

   • Global bonds experienced a sharp selloff on Wednesday, September 2.
   • Borrowing costs are rising toward multi-decade highs.

   Still unconfirmed

   • Treasury Secretary Bessent has intervened in the currency and bond markets.
   • The G-20 provided no indication that deficits, inflation, or geopolitical disruptions will end.
   • Middle East conflict is pushing up oil prices and jolting markets.

   What to watch next

   • Further interventions by Treasury Secretary Bessent in the bond market
   • Updates on Middle East conflict impacts on oil prices
   • Official Fed responses to surging Treasury yields
   Sources used for this update (6)

   1. www.briefs.co — China's Crackdown on Auto Safety Collides With a Race to Develop Cars Faster
   2. www.counterpunch.org — The Yen, US Treasury and the Financial Crisis of Empire
   3. finance.yahoo.com — The 5% yield trap: What to buy and sell right now
   4. www.livemint.com — The bond market issues world leaders a failing grade
   5. theprint.in — Bond selloff deepens as inflation risks, oil prices jolt markets
   6. heatmap.news — AI and Iran Are Creating a Tug of War for Renewables
   confidence 70%
2. 1d ago

   Warsh Influences Treasuries Market Amid Fed Debate

   Kevin Warsh's plans for the Fed are driving the Treasuries market, causing a divergence with Scott Bessent on interest rate setting. This has sparked a debate on the Fed's role in setting rates, leading to a battle royale in the bond market between the Treasury and the Fed. The influence of Warsh's involvement is being closely watched.

   Why it matters

   The debate on the Fed's role in setting interest rates has significant implications for the US economy and financial markets. The Treasury and the Fed have different views on how to manage the economy, and Warsh's plans have added to the uncertainty. The outcome will affect borrowing costs, economic growth, and the overall stability of the financial system.

   What is confirmed

   • US-Iran hostilities are escalating again as President Trump weighs possible retaliation targeting Iran’s Kharg Island, a crucial oil-export hub in the Strait of Hormuz.
   • Crypto projects spent $638M on token buybacks this year, led by Hyperliquid and pump.fun as teams try to support prices amid market slump.

   Still unconfirmed

   • Trump blasts data centre critics as backwards and poor

   What to watch next

   • US jobs report
   • Broadcom and Palo Alto Networks earnings reports
   • Iran's response to potential US retaliation
   Sources used for this update (4)

   1. www.cnbc.com — Here are the 3 big things we're watching in the stock market in the week ahead
   2. www.foxnews.com — Trump teases retaliation on Kharg Island after Iran strikes US bases in Jordan
   3. www.briefs.co — Crypto Groups Pour About $640mn Into Token Buybacks Amid Market Slump
   4. www.capitalbrief.com — Treasury tells Chalmers AI won’t save productivity
   confidence 80%
3. 3d ago

   Warsh Drives Treasuries Market with Fed Plans

   Kevin Warsh's plans for the Fed are influencing the Treasuries market, causing a divergence with Scott Bessent on who should set the price of money. This has led to a battle royale in the bond market between the Treasury and the Fed. Warsh's involvement has sparked a debate on the role of the Fed in setting interest rates.

   Why it matters

   The ongoing debate between Kevin Warsh and Scott Bessent reflects a larger struggle between the Treasury and the Fed over control of the bond market. This has significant implications for the US economy, as the Fed's actions can impact interest rates and inflation. The Treasury's role in setting interest rates has become a contentious issue, with some arguing that it should be the primary authority.

   What is confirmed

   • Kevin Warsh has a plan for the Fed
   • Scott Bessent is getting in the way of Kevin Warsh's plan
   • There is a battle royale in the bond market between the Treasury and the Fed
   • The Treasury is seen as the new sheriff in town, taking control of interest rates

   Still unconfirmed

   • The year of Fed irrelevance is almost complete

   What to watch next

   • The outcome of the debate between Warsh and Bessent
   • The Fed's decision on interest rates
   • The Treasury's response to the Fed's actions
   Sources used for this update (7)

   1. CNN — Kevin Warsh has a plan for the Fed. Scott Bessent is getting in the way | CNN Business
   2. Reuters — Bessent, Warsh diverge on who should set the price of money
   3. WSJ — Kevin Warsh Has to Pick a Side in the Bond-Market Battle
   4. Bloomberg.com — Warsh Is Driving Treasuries Market, Whether He Wants to or Not
   5. Adam Tooze | Substack — Chartbook 470 Treasury v. Fed 2026: Battle Royale or “Epic Fury” in the bond market?
   6. Forbes — The Year Of Fed Irrelevance Is Almost Complete: The Treasury Is The New Sheriff In Town
   7. Barron's — This Isn’t the First Fight Between Treasury and Fed Over Interest Rates
   confidence 75%