MarketPR
Treasury yields are falling even as fresh inflation data climbs, and markets are crediting a specific catalyst: new Federal Reserve Chair Kevin Warsh's hard line on price stability.
Warsh's hawkish signals appear to be working where blunt policy moves often lag — by reshaping expectations before the data has fully turned.
Credibility Does the Heavy Lifting The dynamic playing out in the bond market is a textbook case of central-bank communication functioning as policy.
When a Fed chair signals a genuine willingness to keep rates high — or push them higher — bond investors tend to reduce the inflation risk premium they demand to hold longer-dated Treasuries.
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