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Banking

US Treasury bond purchases risk collision with Fed

Increased US Treasury debt purchases under Secretary Scott Bessent risk undermining Federal Reserve chair Kevin Warsh’s effort to control inflation, the Financial Times reported. The intervention places fiscal and monetary authorities on potentially conflicting paths. The available feeds did not provide the purchases’ size, maturity profile or a formal Federal Reserve response.

Why it matters

Conflicting Treasury and central-bank actions could complicate inflation control and bond-market expectations.

Sources

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