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The U.S. Treasury's Bond Market Intervention Is a Nightmare Scenario for Fed Chair Kevin Warsh and the FOMC

Thanks to Scott Bessent, Fed Chair Warsh now finds himself stuck between a rock and a hard place.

The U.S. Treasury's Bond Market Intervention Is a Nightmare Scenario for Fed Chair Kevin Warsh and the FOMC

Published August 22, 2026 · Category: Finance

Overview

Despite volatility tied to the Iran war, it's shaping up to be another fantastic year for investors. Since the beginning of June, the ageless Dow Jones Industrial Average (DJINDICES:^DJI), broad-based S&P 500 (SNPINDEX:^GSPC), and innovation-driven Nasdaq Composite (NASDAQINDEX:^IXIC) have all catapulted to fresh highs, thanks in large part to the artificial intelligence (AI) revolution.

But several factors suggest the stock market is on shakier ground than the Dow, S&P 500, and Nasdaq Composite indicate. Perhaps no headwind echoes louder than inflation.

Fed Chair Kevin Warsh's job just became far more challenging. Image source: Official Federal Reserve Photo.

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Source

Originally published at www.fool.com.

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