# Bond yields surge, but Fed unlikely to step in

> Treasury Secretary Bessent is struggling to control rising bond yields, but the Federal Reserve is expected to resist pressure to buy government debt.
- Title: Bond yields surge, but Fed unlikely to step in · Yahoo Finance
- Summary: Treasury Secretary Bessent is struggling to control rising bond yields, but the Federal Reserve is expected to resist pressure to buy government debt. The…
- Keywords: federal reserve, treasury bonds, bond yields, scott bessent, kevin warsh, monetary policy, quantitative easing, fed independence, inflation, government debt, business, finance
- Source: Yahoo Finance — https://finance.yahoo.com/economy/policy/articles/bond-market-woes-likely-factor-100656182.html
- Published: 2026-09-16T12:12:19+00:00
- Read time: 1 min
- Topics: federal reserve, treasury bonds, bond yields, scott bessent, kevin warsh, monetary policy, quantitative easing, fed independence, inflation, government debt, business, finance
## Bond yields hit 19-year high
The 10-year Treasury note has risen above 5% for the first time since 2007, raising borrowing costs across the U.S. economy.
## Bessent's buyback push isn't working
Treasury Secretary Scott Bessent expanded a debt buyback operation last week to tamp down yields, but the effort has failed to reverse the upward trend.
## Fed could be asked to buy bonds
Rising yields are raising questions about whether the Fed might be requested to purchase government debt to reduce supply and lower borrowing costs.
## Fed watchers see intervention as unlikely
Analysts believe the Fed will resist explicit calls from the Trump administration to bail out the bond market, absent a major market crisis.
## Warsh prioritizes Fed independence
Fed Chairman Kevin Warsh cares deeply about the central bank's credibility and will resist being drawn into Treasury's market interventions, analysts say.

> cares a lot about the Fed's credibility, and about his own
## Bond buying would clash with inflation fight
Purchasing bonds at Treasury's request would undermine the Fed's effort to bring inflation back to its 2% target and violate the 1951 Treasury-Fed Accord.
## Warsh wants smaller Fed balance sheet
Fed Chairman Warsh wants the central bank's overall holdings, now at 6.7 trillion dollars, to shrink, making large-scale bond purchases unlikely.
## Higher yields reflect economic strength
New York Fed President John Williams said rising yields reflect the strength of the economy and aggressive technology investment, not a market problem.

> more of a reflection of the strength of the economy
## Fed rate hike expected Wednesday
The Fed is expected to raise its policy rate by a quarter percentage point to 3.75% to 4% on Wednesday, which could help lower long-term yields over time.
## Key takeaway

The Fed will prioritize its inflation-fighting credibility and independence over Treasury's request to intervene in bond markets, even as yields hit their highest levels since 2007.