Bessent Broke It: Only Warsh Can Fix It

James Foord Investing Group Leader Follow Summary The Treasury's expanded buyback operations failed to meaningfully support long-dated bonds but triggered a sharp drop in the dollar. Gold, Silver, Bitcoin, and international stocks rallied on dollar weakness, while broad equity indexes declined. But this comes with a real threat to AI, which could take a hit if short-term rates increase from here. Market stability now hinges on Kevin Warsh's and the Fed's willingness to coordinate with Treasury to manage rates and inflation. This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » Backiris/iStock via Getty Images Thesis Summary The Treasury Department announced it would at least double the size of its liquidity support buyback operations for long-dated bonds. Yields reiterated for a bit, but now they're climbing back as outstanding public debt crosses $40 This article was written by James Foord 29.5K Followers Follow James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.