The verdict from the commentariat this week was unanimous. When 30-year US Treasury yields spiked as much as 14 basis points to 5.23 per cent – their loftiest level since 2007 – moments after Kevin Warsh’s second meeting as Federal Reserve chairman concluded with no change in the cash rate, Bloomberg declared a “credibility warning”.CNN reported the bond market had “called his bluff”. The consensus: Warsh talks tough on inflation while doing nothing, and investors are punishing him for it.Subscribe to gift this articleGift 5 articles to anyone you choose each month when you subscribe.Subscribe nowAlready a subscriber? Fetching latest articles
Warsh isn’t losing the bond market – He’s weaponising it
Investors seem to have missed the fact that the new Fed chair has already delivered his rate hikes.
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