Bond Investors’ Inflation Angst Rises on Fed’s Lack of Guidance

Yields on long-term government bonds steadied on Thursday, a day after jumping higher, as a chorus of investors and analysts warned that Kevin M. Warsh, the new chairman of the Federal Reserve, had risked the central bank’s credibility by limiting its economic guidance.

The yield on the 10-year Treasury note, which underpins the cost of borrowing from mortgages to business loans, inched lower on Thursday but remained close to its highest level since President Trump returned to the White House. The average 30-year mortgage rate climbed to its highest in almost a year, according to Freddie Mac.

The yield on the 30-year Treasury bond also held steady after hitting its highest level since 2007 on Wednesday.

Mr. Warsh has said that he and his fellow policymakers can gain better insight into what investors really think about the economic outlook if financial markets remain “unfiltered,” meaning they have not first passed through the filter of the Fed’s guidance about how it sees the economy going forward.

Article source: https://www.nytimes.com/2026/07/30/business/federal-reserve-warsh-bonds.html