US Treasuries staged a recovery after Kevin Warsh, in his first meeting as Federal Reserve Chairman, made clear he’s not here to play nice with inflation. The message was blunt: price stability is coming back, whether markets like it or not.
Warsh, who took over the Fed’s top seat on May 22, 2026, succeeding Jerome Powell, used his inaugural FOMC meeting on June 17 to hold the benchmark interest rate steady. But the real signal was in the forward guidance: a potential rate hike by year’s end.
A new sheriff with an old playbook
Inflation in the US has been running between 3.3% and 3.8% for over five years now. That’s roughly double the Fed’s 2% target.
Warsh described the Fed’s commitment to restoring price stability as “strong, unanimous, and unambiguous.”
