Warsh and Bessent Need to Regain the Policy High Ground

By Michael Ball, Bloomberg Markets Live reporter and strategist

The 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.