Bloomberg Surveillance · Wednesday, September 2, 2026
Jay Pulaski identified a 'confusion' between US policymakers, specifically the Treasury Secretary and the Fed Chair, regarding interest rate management. He pointed to the Treasury Secretary intervening in the market while the Fed Chair speaks about letting the market dictate inflation and rates, creating market uncertainty.
“There's a kind of discontinuity between Fed Chair Warsh, who wants to let the market tell people what's happening with inflation and interest rates, versus the U.S. Treasury Secretary, who is intervening in the exact same market.”
“So there's confusion, I think, as I say, between the policymakers in the U.S., and the market sniffs that out and presses against it. And as you say, what weapons do they really have?”
“Well, you know, arguably, they have a lot of weapons, but the market is pressing the Treasury Secretary, I think, in particular, to demonstrate some more of that action.”