Fed Chair Warsh (Q&A): Sees 3 reasons bond yields have risen; 1) Economic strength; 2) Capital Expenditures and surge in capex is real; 3) Geopolitics
Fed Chair Warsh (Q&A): Believe that the unemployment rate is basically running consistent with full employment and don't believe that we need to do harm to the labour markets to achieve its objective
Fed Chair Warsh (Q&A): Committed to a discipline not to a decision, and today's action starts to show they are serious about it
Fed Chair Warsh (Q&A): Sees 3 reasons bond yields have risen; 1) Economic strength; 2) Capital Expenditures and surge in capex is real; 3) Geopolitics
Fed Chair Warsh (Q&A): Reiterates inflation is the problem
Fed Chair Warsh (Q&A): Stable prices offer good news to workers to see real take home pay increase and today took a step forward delivering price stability
Open the platform and use it. The whole workspace is free to try, with no signup and no card. When you want the headlines arriving live instead of on a delay, Newsquawk Pro is £24.99 for 7 days.
When a sitting or prospective Fed chair offers a taxonomy for why long yields have risen, the market-relevant content is less the list itself than what it excludes: none of the three reasons cited, growth, real capex, geopolitics, is a term-premium or fiscal-supply story, and all three are consistent with policy being neither too tight nor behind the curve. Framing of this kind has historically been used to validate higher long rates rather than to push back against them, which matters for how the back end trades against the front: it argues for a steeper curve as the intended equilibrium, not as a policy error to be corrected. The capex framing in particular echoes past episodes where officials have treated an investment surge as a rise in the neutral rate, a reading that shifts the whole curve rather than just timing at the front. The geopolitical reference, paired with the FX tags, is the loosest leg and the one most likely to be walked back or clarified, since chairs rarely quantify that channel. Follow-ons worth noting are whether other officials adopt the same three-part framing, and whether it survives the next long-duration auction cycle and refunding announcement, which is where such narratives tend to be tested.
Related headlines
- [MARKET UPDATE]: Hawkish reaction with stocks, bonds and gold falling while the Dollar rises after the Fed hiked rates in unanimous decision, dot plots pencilled in one more hike this year, and Warsh emphasised commitment to price stability1 hour ago
- Fed Chair Warsh (Q&A): Asking what changed between now and July; data has shown economy has strengthened and at Jackson Hole said inflation trends weren't passing the test, and seeing very little information since to reverse that, so have stuck with it2 hours ago
- Fed Chair Warsh (Q&A): Can't effect any individual prices in regards to oil, but what we can do, and will do, is ensure that any change in relative prices don't broaden out, don't have second and third-order effects on the economy2 hours ago
- Fed Chair Warsh says in July expressed joint readiness to act and the FOMC decided that this standard has not been satisfied and the committee's unanimous vote shows our resolve to achieve price stability on a timelier basis2 hours ago
- Fed Chair Warsh says yet for more than 5 years, inflation has been running above target2 hours ago
- Fed Chair Warsh says decision comes when the economy appears to be strengthening and is pointing in a good direction2 hours ago
- CRUDE WRAP: WTI (V6) SETTLED USD 3.40 LOWER AT 102.43/BBL; BRENT (X6) SETTLED USD 2.92 LOWER AT 105.83/BBL1 hour ago
- Fed Chair Warsh (Q&A): Believe that the unemployment rate is basically running consistent with full employment and don't believe that we need to do harm to the labour markets to achieve its objective2 hours ago
- Fed Chair Warsh (Q&A): Committed to a discipline not to a decision, and today's action starts to show they are serious about it2 hours ago
- Fed Chair Warsh (Q&A): Reiterates inflation is the problem2 hours ago
- Fed Chair Warsh (Q&A): Doesn't have anything for you on discussions with Trump2 hours ago
- Fed Chair Warsh (Q&A): Was not waiting breathlessly on what any particular data was, whether it was retail sales this morning or a CPI print last week; reiterates trends matter and data points are noisy2 hours ago
- Fed Chair Warsh (Q&A): Always been interested in neutral rate as an academic matetr2 hours ago
- Fed Chair Warsh (Q&A): Decision today was the right one; reiterates they will deliver stable prices2 hours ago
- Fed Chair Warsh (Q&A): Asked if it was a market led rate hike, says it was based on its judgment on the strength of the economy; will observe market prices and see what they have to say2 hours ago
- Fed Chair Warsh (Q&A): Asked about future rate hikes, says he is not in the forward guidance business; not going to prejudge any future decision they may make2 hours ago
- Fed Chair Warsh says it was evident that most advanced economies are facing price pressures, and FOMC decision today reflects their best judgment in service to its remit2 hours ago
- Fed Chair Warsh confirms he was the one that did not submit a dot plot, as expected2 hours ago
- Fed Chair Warsh highlights the strength of the US labour market2 hours ago
- FOMC Summary of Economic Projections: Only 18 of 19 members submitted forecasts (expectations were for Warsh to not submit forecasts)3 hours ago
The whole workspace, free to try.
Try it free