The 10-year minus 2-year Treasury spread narrowed to 0.43% as Kevin Warsh took over as Fed Chair, signaling traders expect higher-for-longer interest rates.

The new Federal Reserve Chairman, Kevin Warsh, will likely slash interest rates, despite most traders forecasting a rate hike, according to a market analyst.

Warsh's AI-driven easing thesis meets a bond market running on structural deficits and depleted reserves, setting up the most consequential yield curve trade of 2026.