Bessent and Warsh diverge on debt policy
Treasury Secretary Scott Bessent and Fed Chairman Kevin Warsh are divided over setting borrowing costs. Bessent is expanding debt buybacks to lower yields while Warsh favors letting markets drive rates.
Treasury Secretary Scott Bessent and Federal Reserve Chairman Kevin Warsh diverge on how interventionist policymakers should be in setting interest rates. The policy split emerges as Washington struggles to contain borrowing costs amid a widening deficit in the United States. The debate sets the stage for a policy clash over whether markets or central banks should dictate debt yields.
