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The Bond Market Puts Kevin Warsh on a Short Leash
Season 1
Episode 4
Published 1 month, 2 weeks ago
Description
In this episode of The Federal Reserve Podcast with Fexingo, Lucas and Luna examine the market dynamics shaping Kevin Warsh's first week as Fed chair. The ten-year Treasury yield sits at 4.59 percent, the five-year at 4.26 percent—a steep curve that signals bond vigilantes are watching every move. With core CPI ticking up to 335.4 and the 10-year breakeven inflation rate dipping to 2.39 percent, the hosts discuss whether Warsh can balance market credibility with economic growth. They revisit Ed Yardeni's prediction that the Fed must hike in July and explore how the new chair's hawkish reputation may already be priced in. A specific, numbers-driven conversation about the tension between central bank independence and bond market discipline.