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Treasury Buybacks Complicate Fed Balance Sheet Plans

Treasury Buybacks Complicate Fed Balance Sheet Plans

Treasury announced upsized buybacks to $4B per operation, potentially conflicting with Warsh's goal of shrinking the Fed's balance sheet. This shifts market influence from Fed to Treasury. BTC rallied despite hawkish minutes, possibly reflecting this dynamic. New article highlights Musalem and Daly weighing Treasury debt moves ahead of rate decision, adding complexity.

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Updated Aug 22, 2026