Besant Warns Bond Market Affects Government, May Help Walsh Tackle Policy Pressure

On September 14, U.S. Treasury Secretary Besant warned that the number of governments toppled by the bond market exceeds those brought down by artillery fire. This perspective may support Federal Reserve Chairman Walsh in addressing policy pressures this week. The market expects the Federal Reserve to raise interest rates at the September FOMC meeting concluding this week, while the Trump administration hopes for further easing of financial conditions. Recent U.S. employment data has been stronger than expected, and inflation remains above the Federal Reserve's 2% target, putting pressure on the Fed to continue tightening policy. Besant stated that Trump understands the power of the bond market and believes Walsh will optimize the policy path based on inflation and economic growth. Although the Federal Reserve should not cater to the bond market, the White House's recognition of the bond market's influence may give Walsh greater policy maneuverability and remind the Trump administration not to exert excessive pressure on the Fed. Wall Street warns that if the Federal Reserve continues to wait and see amid high inflation and energy price shocks, the bond market may force policymakers to act by pushing up long-term U.S. Treasury yields; if Walsh's policies disappoint the market, it could raise questions about his independence and further increase financing costs for the government and private sector.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.