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The US Treasury's increased purchases of government debt have put Secretary Bessent on a collision course with the Federal Reserve.
The bond intervention threatens to undermine Federal Reserve chief Kevin Warsh's bid to tame inflation. Warsh has made reducing inflation a priority. Treasury bond purchases complicate that objective.
The two institutions now point in opposite directions. Warsh is working to bring inflation down.
The conflict runs along institutional lines: what the Treasury is doing in bond markets runs counter to the Fed's inflation mandate. No resolution has been disclosed.
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