According to CoinMeta, the emergency measures taken by Bessent could reignite market expectations for interest rate hikes, providing new grounds for the Fed's hawks. This change could dominate interest rate trading in the coming days as it reframes the story of bond purchases as a potential trigger for monetary policy. If the Fed considers the relaxation of financial conditions to be significant, it would represent a completely new path for interest rate hikes, different from the data-driven hikes that have been fading since the July meeting. The market has already discounted the risk of rate hikes due to weakening data, not the relaxation of financial conditions; therefore, if the Fed responds to this, it would come as a surprise to markets that have been trading based on the old, data-driven narrative. The US dollar is at the center of this crosscurrent, weakening due to the bond purchases themselves, but there is an asymmetric upward risk if rate hike pricing returns. In the coming days, it will be important to closely monitor the public comments of Federal Reserve Chairman Warsh to see if the Fed pays attention to this channel of financial conditions. The Treasury Department's aggressive expansion of bond purchases is aimed at calming the market, but it could have the opposite effect on interest rate expectations, providing the Fed's hawks with a new, data-independent reason to raise rates.