[Carlyle Group Warns of Blurred Roles Between the Federal Reserve and Treasury Disrupting Bond Market] Jason Thomas, Global Head of Research and Investment Strategy at Carlyle Group, pointed out that the boundary between the roles of the U.S. Treasury and the Federal Reserve could become blurred due to policy changes, potentially impacting the Treasury bond market. The Trump administration has been pressuring the Federal Reserve to cut interest rates while simultaneously pushing the Treasury to increase the issuance of short-term bonds, which could lead to higher long-term borrowing costs. Thomas emphasized that bond investors expect the Federal Reserve to focus on preserving the real value of principal rather than prioritizing government financing needs. If the market perceives the Federal Reserve as deviating from its core responsibilities, it could trigger bond sell-offs and an increase in term premiums. Treasury Secretary Besent recently proposed the idea of issuing short-term Treasury bills to reduce interest expenses, which contrasts with the current high-yield environment, further exacerbating market concerns.