Warsh steps into spotlight after Bessent’s bond move

▪ Trump’s mail-in voting order challenged again

▪ Meta agrees to restrictions in settlement

▪ FDA approves major pancreatic cancer treatment

Federal Reserve Chair Kevin Warsh will step into the spotlight this week as he delivers his first major speech as chair, with investors anxious to see whether he articulates a clear framework for how the Fed will respond to inflation fears and changing economic conditions.

Warsh’s keynote address, scheduled for Friday at 10 a.m. EDT, will headline the three-day economic policy symposium hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyo. The annual conference begins today.

It comes at a tricky moment for the bond market: The yield on the 30-year Treasury bond reached 5.3 percent last week, the highest level in nearly two decades, and the average 30-year fixed-rate mortgage jumped to 6.6 percent.

That spurred Treasury Secretary Scott Bessent to announce the Treasury Department would double the amount of longer-term government debt it can buy back from investors. That announcement came on the same day the national debt surpassed $40 trillion for the first time, doubling in less than a decade.

The surprise intervention temporarily calmed the bond market but did little to alleviate concerns about the forces driving yields higher, and on Friday, the yield on the 30-year Treasury bond climbed back to 5.25 percent, while the 10-year yield reached 4.73 percent, higher than before the announcement.

The move also further complicates Warsh’s position. Investors seem to think Bessent’s intervention increased the likelihood of inflation ahead, which in turn puts pressure on the Fed to consider raising borrowing rates — a move that would almost certainly draw the wrath of President Trump , who insists rates should go down.

Investors also see a disconnect between Warsh and Bessent on bond yields: Warsh has suggested rising yields could tighten monetary conditions and reduce pressure on the Fed, while Bessent’s move was widely interpreted as attempting to reduce those yields, though he described it as an effort to increase liquidity in the market.

So far, Warsh has taken a tight-lipped approach to signaling future policy decisions, setting expectations low for Jackson Hole. Still, markets could react negatively if he does nothing to soothe investor anxiety or indicate some commitment to keep inflation near the 2 percent target.

“A central bank does not need to tell markets what it will do months in advance, but it does need to explain what variables it is watching,” WisdomTree senior economist Jeremy Siegel , an emeritus professor of finance at The Wharton School, wrote this week .

“Jackson Hole gives Warsh an opportunity to clarify that reaction function. If he does not, it will be disappointing but not devastating,” Siegel said, noting the September Federal Open Market Committee “will provide a second and ultimately more important opportunity.”

Bank of America FX strategists said in a note Wednesday that the dollar was “on edge” ahead of the speech. Nodding to the Treasury Department’s bond market intervention, they said the Fed could help contain long-term Treasury yields by embracing a more hawkish policy approach (i.e. a willingness to hike interest rates) or articulating clearer guidance on the role it sees for itself in responding to inflation.

“We expect Chair Warsh to change his communication to help contain the bond,” they wrote, noting they’d otherwise be concerned about long-end yields rising sharply.

“If he uses the speech to focus solely on broader structural themes such as productivity or demographics, we worry markets could interpret the message as dovish,” they added.

That expectation is not universally shared.

Morgan Stanley economists said in a note that they think Warsh “is sincere in his desire to communicate less and we do not expect him to provide anything that would clarify his thinking on the near-term outlook for the economy and monetary policy.”

Stephen Myrow , a former Treasury Department official and managing partner of Beacon Policy Advisors, similarly set low expectations.

“Investors hoping for more details from Warsh will likely be disappointed,” Myrow told The Hill. “He’s deliberately playing coy, using a minimalist communications strategy to let the market do the inflation-fighting for him.”

“That may cut against the Trump administration’s — and especially Bessent’s — short-term political interests, but for Warsh it’s the lesser of two evils: it lets him delay rate hikes as long as possible and stay out of Trump’s crosshairs,” he continued.

▪ The Hill : Fed’s preferred inflation gauge remains flat at 3.7 percent in July.

▪ The Hill : Republicans divided over preelection stimulus push.

The landmark $18 billion settlement between Meta and states across the country could change how your kids consume social media. The agreement also sends hundreds of millions of dollars to many states. I spoke with Hawaii Gov. Josh Green (D) about how his state plans to use the funds. He said adolescent mental health care will be a focus for him, and he also levied this warning to his fellow governors.

“The temptation is to use those monies for pet projects. Don’t do it, governors,” Green told me . “Invest it in the right places, just like you should invest tobacco settlement dollars in the right places. That’s the best thing you can do,” he added.

While Meta settled, this is likely not the end of the states putting pressure on major social media platforms. Whether changes get codified into law will be a question for lawmakers going forward.

Burman hosts “The Hill” weeknights, 6 p.m. EDT /5 p.m. CDT on NewsNation.

The Trump administration has paused immigrant visa appointments worldwide to carry out “in-depth training” for consular officers to screen out applicants at risk of taking advantage of U.S. public assistance. The announcement came after a judge vacated Trump’s policy suspending visa processing from 75 countries.

Defense Secretary Pete Hegseth is considering his chief spokesperson , Sean Parnell, among the candidates to succeed Army Secretary Dan Driscoll, who is preparing to exit the Pentagon in the coming months, two sources familiar with the matter told The Hill’s Filip Timotija .

General Mills said it has ended the use of artificial coloring in its cereals , which include Trix and Lucky Charms, following a push for food retailers to phase out artificial dyes from their products. The colors are being replaced with natural hues made from products such as beets, radishes and sweet potatoes.

A tray of mail-in ballots is seen at King County Elections headquarters on Election Day, Nov. 5, 2024, in Renton, Wash. (Lindsey Wasson, Associated Press file)

TAKE TWO : A coalition of roughly two dozen Democratic-led states and Washington, D.C., filed a new lawsuit Wednesday again challenging the legality of Trump’s executive order on mail-in ballots after the Supreme Court turned away the group’s earlier case.

The court ruled Monday, over the dissents of its three liberal justices, that the states didn’t have a right to sue against Trump’s order he signed in the spring because the U.S. Postal Service hadn’t finalized the rule to execute the order.

The rule was published in the Federal Register on Wednesday, making it official and leading to the states’ renewed effort to block it, arguing it’s a federal overreach on states’ authority to carry out their own elections.

Trump’s order, which he issued in March, and the rule require state and local election officials to submit a list of eligible voters to the federal government before the Postal Service will them send mail-in ballots. The rule also requires states’ mail-in ballots to meet certain design requirements, including unique barcodes and an official logo.

If the ballot doesn’t meet the design requirements or someone’s name isn’t on the submitted list, or if a state refuses to provide one, the Postal Service would refuse to deliver the ballot.

The states’ lawsuit was filed Wednesday just as a federal judge in Boston lifted an earlier nationwide block on the restrictions given the Supreme Court’s earlier ruling. But the new case could mean the legal challenge ends up right back at the Supreme Court.

Timing is critical, as the first mail-in ballots are set to be sent out in certain states within days for the midterm elections.

▪ The Hill : Trump petitions Supreme Court to review Mexico border asylum ban.

▪ The Hill : Trump’s approval ratings endure a cruel summer.

BIG DEAL : Meta has reached a settlement with a group of state attorneys general from across the country to address claims that its platforms are designed to be addictive to young users.

The proposed settlement needs to be approved by a judge but would conclude the high-profile trial that started earlier this month . Under the terms of the deal, made with 52 state, D.C. and territorial attorneys general, Meta will pay up to $17 billion to the plaintiffs over the course of 10 years.

Meta will also need to make a wide variety of changes to its apps, Facebook and Instagram, including default daily time limits for users under 18 years old and restrictions on use and notifications during the school day and at night. Only a parent could lift the default daily two-hour time limit.

A nighttime block will be in place for minors from midnight to 6 a.m., also only removable by a parent. Notifications will be blocked for these users from 10 p.m. to 7 a.m. and during the school day.

A display on the number of likes and reactions will be banned for children, as will plastic surgery image filters. Meta will also be required to roll out an “enhanced” way for teenagers to report potentially harmful content.

Under a separate agreement with Texas, Meta will pay an additional $1 billion and need to make similar changes to its apps.

Attorneys general across the country and political aisle celebrated the settlement as a victory for children’s safety online. The agreement comes after Meta lost in two other child safety trials in California and New Mexico recently.

▪ The Hill : Pennsylvania attorney general accuses Snapchat of failing to protect kids.

NUCLEAR REVIEW : The Trump administration has sent the nuclear cooperation agreement with Saudi Arabia to Congress, starting the federally mandated congressional review process.

The 30-year deal would allow Saudi Arabia to enrich uranium and allow U.S. companies to develop Saudi Arabia’s civil nuclear infrastructure.

The submission by the White House starts the review period as laid out by Section 123 of the Atomic Energy Act, which covers nuclear cooperation agreements. The deal doesn’t need a two-thirds approval by the Senate, but the House Foreign Affairs Committee and Senate Foreign Relations Committee will have a chance to contest it during a 90-day window.

If Congress does not pass a joint resolution to reject the deal during that period, it can go into effect.

Still, questions remain as to whether it will take effect even if Congress doesn’t reject it. An administration official told The Hill on Wednesday that Trump’s retroactive condition for the deal, that Saudi Arabia join the Abraham Accords and recognize Israel, remains in place.

▪ Reuters : Bangladesh could consider joining Mecca pact.

▪ The Hill : NASA, Fed, Senate targeted by Chinese hackers, Justice Department says.

LIFE-EXTENDING TREATMENT : The Food and Drug Administration (FDA) has approved a treatment for advanced pancreatic cancer, providing a new lifeline for patients dealing with one of the disease’s most aggressive forms.

The once-a-day pill is manufactured by Revolution Medicines and will be sold under the brand name Rasonque. The FDA approved it for patients who already tried one line of therapy or who are not candidates for initial chemotherapy.

The Hill’s Nathaniel Weixel reports that the drug is not a cure but is the first real option for extending the life of patients diagnosed with pancreatic cancer.

“For the first time, patients have an approved targeted medicine designed to directly inhibit the main cause of pancreatic cancer, RAS, which has been one of the most intractable disease targets since its discovery decades ago,” Mark Goldsmith , the chief executive officer and chair of Revolution Medicines, said in a statement.

Pancreatic cancer accounts for only about 3 percent of all cancer diagnoses but a disproportionately high amount of cancer deaths. It’s typically been detected late, and treatment options to extend a patient’s life have been limited.

▪ WOWT : Drug taken by former Sen. Ben Sasse in clinical trials.

▪ The Hill : Florida moves to end some school vaccine requirements.

The president will participate in signing time at 1:30 p.m. He will travel to Houston to participate in a Republican National Committee event at 7 p.m. EDT.

The Senate will meet at 8 a.m. for a pro forma

The House will convene at 9 a.m. for a pro forma session.

A wreath is presented before being place by Marlon Bateman, former U.S. Marine Sgt. Tyler Vargas, former U.S. Marine Cpl. Kelsee Lainhart left, and President Trump at the Tomb of the Unknown Solider in honor of the 13 service members killed at Abbey Gate, at Arlington National Cemetery, Aug. 26, 2024, in Arlington, Va. (Alex Brandon, Associated Press file)

FIVE YEARS ON : The White House and Pentagon are playing up the deadly bombing at Abbey Gate at the Kabul airport in Afghanistan on the fifth anniversary of the attack.

Hegseth held a ceremony Wednesday honoring the Marines who died during the suicide bombing, which was carried out by a member of a branch of the Islamic State, as the U.S. was carrying out its withdrawal from Afghanistan. The withdrawal ended the 20-year war and within days resulted in the return of the Taliban to power after a hiatus that began in the aftermath of the 9/11 attacks.

The attack killed 13 U.S. service members and about 170 Afghan civilians.

The ceremony was for Hegseth to formally upgrade the valor awards given to the Marines who guarded Abbey Gate on Aug. 26, 2021. The Defense Department announced earlier this year that it was upgrading the awards to reflect the “extreme risk” that the Marines knowingly endured.

“A military that downplays its frontline heroes to avoid uncomfortable political truths only projects weakness,” Hegseth said. “For too long, leadership in this capital city failed to match that frontline courage with administrative backbone, inappropriately downgrading the original award submissions that these men rightfully deserved.”

The incident and chaos surrounding the Afghanistan withdrawal was seen as a key moment in the administration of former President Biden . His approval rating fell underwater after the withdrawal took place and never completely recovered.

The White House also issued a proclamation recognizing those who were killed and slamming Biden for the withdrawal.

Trump had reached the deal with the Taliban in 2020 to withdraw all U.S. troops by the following year, but he has frequently denounced Biden for how the withdrawal was carried out.

“For 20 years, the brave warriors of the United States Armed Forces fought across the mountains and cities of Afghanistan to destroy terrorism and remove the Taliban from power,” Trump’s proclamation states.

“Yet within months, President Biden squandered those hard-fought gains, putting politics over strategy and rushing through a poorly executed withdrawal that would soon become one of the worst military disasters in our Nation’s history.”

▪ Politico : Pentagon claims to have found ‘hidden’ files on final days of Afghanistan war.

▪ PBS : A look at the devastating impact of aid cuts in rural Afghanistan.

Damaged houses stand precariously near the swollen, debris-choked banks of the Trishuli River after flash floods in Nepal’s Nuwakot district on Aug. 26, 2026. (Niranjan Shrestha, Associated Press)

DEATH TOLL RISING : At least 273 people have been killed and more than 1,300 others are missing after horrific flash flooding swept through the border area of Nepal and China, likely a result of an avalanche from a glacier.

Most of the confirmed dead so far are in Nepal, where officials report 270 deaths and 826 missing. Chinese authorities reported three dead and 558 missing in the Tibet region near the border.

More than 60 people from the U.S. were reported as being among the missing. Others reported missing are from a wide range of countries, including the U.K., Australia, Canada and Japan.

The area’s valleys are key to the region’s economy but can be dangerous when natural disasters strike. Once the flooding began, those in the area had little time to flee.

Climate experts at the Kathmandu-based International Centre for Integrated Mountain Development told The Associated Press that the Trishuli River at one point rose by almost 30 feet in a half hour.

Many of those missing were on pilgrimage to Mount Kailash in Tibet, a holy site for Hindus.

Drone footage showed roads destroyed and buildings underwater. Debris hung from tree branches and wires, and some survivors were covered in mud.

A spokesperson for the Nepalese government said officials have asked both India and China to assist with rescue efforts. A United Nations spokesperson said its agencies were mobilizing for what’s expected to be a “massive humanitarian need.”

▪ NBC News : Videos show crushing walls of water overtake buildings, bridges.

Republicans in America’s reddest state just sent their party a message , Henry Olsen writes in The Washington Post.

Nix on Nixon : How to defeat the DSA in the midterms , former White House deputy chief of staff Karl Rove writes in The Wall Street Journal.

A wand with a star is placed over Dolly Parton’s star on the Hollywood Walk of Fame on Aug. 25, 2026, in Los Angeles. (Chris Pizzello, Associated Press)

And finally … It’s Thursday, which means it’s time for the weekly news quiz!

Country music star Dolly Parton is continuing to be celebrated and memorialized this week following her death at the age of 80 following a short battle with cancer. So in her honor, this week’s quiz will cover some key facts about the Queen of Country.

Be sure to email your responses to jgans@thehill.com — please add “Quiz” to your subject line.

Which of Parton’s songs did she often say throughout her life was her favorite?

What did Parton use to come up with the rhythm in her song “9 to 5”?

Which of the following honors did Parton initially turn down before accepting?

3. Induction into the Rock & Roll Hall of Fame

4. Induction into the Country Music Hall of Fame

Which fellow musician had requested to perform “I Will Always Love You” before Whitney Houston but was turned down?