US Treasuries Rebound After Warsh’s Debut at Fed Stoked Selloff
US Treasuries recovered after a selloff triggered by Federal Reserve Chairman Kevin Warsh's first policy meeting. The Fed held interest rates steady despite resurgent inflation, but a hawkish shift in communication sparked rate-hike bets. Market volatility followed as Warsh indicated a preference for providing fewer signals to investors.
What changed
Treasuries rebounded after an initial selloff and yield spike following Warsh's first meeting.
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US Treasuries Rebound Following Kevin Warsh's Fed Debut
confidence 90%US Treasuries recovered after a selloff triggered by Federal Reserve Chairman Kevin Warsh's first policy meeting. The Fed held interest rates steady despite resurgent inflation, but a hawkish shift in communication sparked rate-hike bets. Market volatility followed as Warsh indicated a preference for providing fewer signals to investors.
What's confirmed:
- The Federal Reserve held interest rates steady during Kevin Warsh's first meeting as chairman.
- Short-term Treasury yields rose to a 16-month high on June 17.
- Kevin Warsh indicated the central bank will not tolerate high inflation.
- The 2-year US Treasury note yield rose following the Fed's hawkish shift.
Still unconfirmed:
- Traders are betting on interest-rate hikes as soon as next month.
- The Fed intends to leave Wall Street to think for itself regarding rate expectations.