Analysts say the move could complicate Warsh’s job by countering yield increases that help tighten financial conditions, potentially requiring more aggressive Fed hikes.

The Dollar Index held near a three-month low of 98.8 after the Treasury moved to contain long-term borrowing costs by at least doubling buybacks of 10-to-30-year debt. July Fed minutes showed some officials favored a hike this year, while the US-Iran stalemate kept inflation concerns alive.

Asian stocks rebounded as global yields pulled back from multi-year highs following the Treasury announcement. South Korea’s KOSPI surged 6% as chipmakers recovered, while Japan’s Nikkei gained 1% and its 10-year yield retreated from a 30-year high.

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