Scott Bessent warned the bond market ‘has taken down more governments than howitzers’: That theory may give the Fed’s Warsh room to breathe this week

AI SUMMARY

# Summary Treasury Secretary Scott Bessent warned that bond market volatility poses a greater threat to governments than military force, suggesting the Federal Reserve and incoming Fed Vice Chair Kevin Warsh may face pressure to ease monetary policy to stabilize markets this week. Bessent's comments indicate the Trump administration views aggressive rate hikes as unsustainable, potentially giving the Fed political cover to pause or cut rates despite inflationary pressures.