**[Besent Warns "Bond Markets Topple More Governments Than Grenades," May Provide Walsh "Breathing Room" This Week]** BlockBeats News, September 14 — U.S. Treasury Secretary Besent warned that "bond markets topple more governments than grenades," a perspective that could serve as critical support for Federal Reserve Chair Walsh in addressing policy pressures this week. Markets anticipate that the Federal Reserve will raise interest rates at the September FOMC meeting concluding this week, while the Trump administration has consistently pushed for further easing of financial conditions. Meanwhile, the latest U.S. employment data exceeded expectations, and inflation remains above the Federal Reserve's 2% target, putting pressure on the Fed to continue tightening policy. Besent previously stated that Trump understands the power of bond markets and believes Walsh will "optimize the policy path" based on inflation and economic growth. The article argues that although the Federal Reserve should not cater to the bond market, the White House's emphasis on the influence of bond markets may grant Walsh greater policy maneuverability while also cautioning the Trump administration against exerting excessive pressure on the Fed. Wall Street has simultaneously warned that if the Federal Reserve continues to stand by amid high inflation and energy price shocks, the bond market may force policymakers into action by driving up long-term U.S. Treasury yields. If Walsh's policies disappoint the market, it could also raise questions about his independence and further increase financing costs for both the government and private sector. [Original Link]