Bessent's Bond Market Intervention Casts Shadow Over Warsh's Call for Markets to "Follow the Data"

Bessent's announcement of expanded Treasury buybacks has triggered policy signal confusion, directly undermining the new communication framework just established by Federal Reserve Chair Warsh. Warsh had urged markets to act based on economic data rather than the Fed's own rate projections, while the Fed also uses market prices as a reference for economic judgment. Meanwhile, analysts noted that if the U.S. Treasury successfully suppresses long-end yields, it could force the Fed to resume rate hikes.