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Fed Chairman Warsh Signals Rates Guided by Treasury Markets

By Drooid · Sep 24, 2026, 10:53 PM UTC · How we work

Summary

Warsh Backs Treasury Signals

Federal Reserve (Fed) Chairman Kevin Warsh said he will let Treasury market signals guide benchmark rate decisions.
Warsh’s stance now aligns with Cleveland Fed President Beth Hammack, the Fed’s most hawkish voter.
CME FedWatch shows odds of a 25-basis-point October hike just over 75%.
10-year Treasury yields rose above 5.1% and 30-year yields exceeded 5.4%.
Bank of America economists projected two additional 25-basis-point hikes in October and December.

Summary

Bentsen Expands Buybacks

Treasury Secretary Bentsen expanded the buyback program, repurchasing $6 billion of 20-30-year bonds on Thursday.
Loop Capital CIO Scott Kimball said risk markets are coping, but the issue stays in interest-rate markets.
United Federal Credit Union’s Christopher Sullivan warned holding bonds makes no sense for many investors amid soaring yields.
Rising yields have pushed mortgage rates higher, increasing borrowing costs for homebuyers across the United States.

History

Historical Context

In the late 1970s U.S. inflation surged to double-digit levels, prompting President Carter to appoint Paul Volcker as Fed chairman in 1979. Volcker’s policy raised the federal-funds rate to a 20% peak in June 1981, sparking the 1980-82 recession that strained mortgage markets. Today, 10-year yields have risen above 5%, leading officials such as Kevin Warsh and Beth Hammack to cite Volcker’s data-driven approach.

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Warsh Backs Treasury Signals

Federal Reserve (Fed) Chairman Kevin Warsh said he will let Treasury market signals guide benchmark rate decisions.
Warsh’s stance now aligns with Cleveland Fed President Beth Hammack, the Fed’s most hawkish voter.
CME FedWatch shows odds of a 25-basis-point October hike just over 75%.
10-year Treasury yields rose above 5.1% and 30-year yields exceeded 5.4%.
Bank of America economists projected two additional 25-basis-point hikes in October and December.

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