Fed’s Warsh lays out forces driving up bond yields

US Market: Fed's Warsh points to AI investment, geopolitical risks for higher yields

Federal Reserve Chair Kevin Warsh said rising bond yields reflect economic strength, heavy capital investment in AI and data centers, and geopolitical uncertainty rather than persistent inflation concerns or doubts about the Fed’s credibility. He emphasized that financial markets inform policymakers but do not dictate decisions, following the Fed’s recent 25-basis-point rate hike.

Fed's Warsh lays out forces driving up bond yields

Federal Reserve Chairman Kevin Warsh suggested on ​Wednesday that among the forces pushing up bond yields, a loss in confidence in the central ‌bank's inflation fight mettle is not on that list.

Warsh: Rising bond yields a sign of strong U.S. economy

Federal Reserve Chair Kevin Warsh framed the central bank's move to increase interest rates Wednesday as a moderate adjustment to rapid economic growth during his post-Federal Open Market Committee press conference.