Surging Treasury yields pose a brand new problem for Kevin Warsh and the Fed

Kevin Warsh, a Federal Reserve governor, faces pressure as Treasury yields have risen sharply in recent weeks. The yield on the 10-year Treasury note increased to levels not seen in months, reflecting market expectations that the Fed will maintain higher interest rates to combat inflation. Warsh has publicly stated the central bank must balance price stability with economic growth, though some economists argue higher rates risk slowing employment gains. The Fed's next policy decision will occur at its scheduled meeting later this month.

Next story