US Treasury yields have surged in recent weeks, with the 2-year hitting 4.17% and the 10-year climbing to 4.48% in early July 2026. Investors are pricing in persistent inflation and betting that rates aren’t coming down anytime soon.
Warsh’s first act: hold the line
Warsh, who was sworn in as Fed Chair on May 22, 2026, succeeding Jerome Powell, wasted no time establishing his priorities. During his first FOMC meeting on June 17, he held rates steady, with most committee members signaling expectations for steady or even higher rates going forward.
Rising oil prices and elevated commodity costs have kept inflationary pressures stubbornly alive, making any pivot toward easing a hard sell to both markets and the committee.
Warsh previously served as a Fed governor from 2006 to 2011, navigating the institution through the global financial crisis.
