Fed Chairman Kevin Warsh left interest rates unchanged on Wednesday. Bond investors tightened the screws anyway.
The 30-year Treasury yield climbed another 6 basis points Friday to 5.27%, its highest since 2007. Two days earlier, Warsh had sounded almost pleased that markets were doing some of the work.
"At some level, we haven't done much in 42 days," he said on Wednesday. "The markets have done quite a bit."
Warsh is betting markets can do part of the Fed's job. The central bank controls the overnight interest rate — the shortest end of the yield curve. Investors set longer-term Treasury yields, which help determine the rates households pay for mortgages and companies pay to borrow.
The Fed has held its overnight rate target at 3.5% to 3.75% throughout 2026. But since Warsh's first meeting in June, the 30-year yield has risen about 34 basis points — or 0.34 percentage points. The 10-year has gained about 24 basis points, while the 2-year is up about 10.
#warsh #year #markets #interest
The 30-year Treasury yield climbed another 6 basis points Friday to 5.27%, its highest since 2007. Two days earlier, Warsh had sounded almost pleased that markets were doing some of the work.
"At some level, we haven't done much in 42 days," he said on Wednesday. "The markets have done quite a bit."
Warsh is betting markets can do part of the Fed's job. The central bank controls the overnight interest rate — the shortest end of the yield curve. Investors set longer-term Treasury yields, which help determine the rates households pay for mortgages and companies pay to borrow.
The Fed has held its overnight rate target at 3.5% to 3.75% throughout 2026. But since Warsh's first meeting in June, the 30-year yield has risen about 34 basis points — or 0.34 percentage points. The 10-year has gained about 24 basis points, while the 2-year is up about 10.
#warsh #year #markets #interest
3 months ago
