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00:02Kevin Walsh has raised the prospect of a new accord between the Federal Reserve and the
00:06Treasury Department, if confirmed as Fed Chair, reviving debate over central bank
00:11independence and bond market policy, according to Bloomberg. Walsh has cited the 1951 Fed
00:16Treasury Accord as a model for limiting the Fed's role in bond markets after years of
00:21large-scale asset purchases during financial crises. Neither Walsh nor Treasury Secretary
00:26Scott-Bessent has detailed potential changes, though Walsh has said an agreement could define
00:30balance sheet size and align it with Treasury debt issuance plans. Analysts say outcomes could
00:35range from minor procedural changes to a reshaping of the Fed's $6 trillion securities portfolio.
00:42Investors fear the Fed could weaken its inflation-fighting role, raising market volatility
00:46and inflation expectations while eroding confidence in the U.S. dollar and Treasuries as safe havens.
00:52For all things money, visit Benzinga.com.
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