The ‘Mar-a-Lago effect’ has reached the Fed

Federal Reserve Chair Kevin Warsh tightens the economy by doing nothing at all

Warsh's Fed holds rates at 3.5%-3.75%, rejects "pause" language on July 29; 10-year Treasury yields climb despite unchanged short rates, tightening financing conditions. Higher long-term yields raise opportunity cost for venture and crypto, compressing yield premiums and increasing M&A and capex costs for tech companies.