The Financial Times says Treasury Secretary Bessent's recent, unexpected
intervention in the US Treasury market — an operation that briefly pushed yields
lower before they rose — runs counter to the Fed's anti-inflation push. The
episode raised market scrutiny ahead of Fed official Wash's Jackson Hole speech;
Wash has urged investors to rely on economic data and market prices rather than
central-bank forward guidance. Market participants warn that if Bessent's effort
to control yields proves ineffective, pressure could build for Fed market
intervention. Bessent and Wash are both protégés of Stanley Druckenmiller and
remain on good terms, but markets now view Treasury and the Fed as moving in
opposite directions.
