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Long-term Treasury yields jumped after the Federal Reserve held interest rates steady, the analysis shows, and investors are now questioning whether Chairman Warsh will act with enough force on inflation.
The analysis reports his credibility is in question. Bond market answers the Fed's hold The Fed left its policy rate unchanged.
Treasury markets responded by pushing long-term yields higher, a signal of investor doubt about the inflation path rather than confidence in the Fed's position.
When the long end of the curve rises while the policy rate stays still, it reflects a market pricing in persistent inflation, not a resolved one. The bond market said that was not enough.
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