Kevin Warsh, the newly confirmed chair of the Federal Reserve, signaled a firm commitment to maintaining restrictive monetary policy during his first official policy statement, immediately pushing US Treasury yields higher.
The hawkish tone from the Trump-nominee marks a decisive break from the silence that characterized his transition period and establishes his independent stance early in his tenure.
The US 10-year Treasury yield climbed in the session following the release of Warsh's remarks.
The move reflects market participants repricing the probability of near-term rate cuts as the central bank's new leader emphasized the need to ensure inflation is fully anchored before considering any easing.
The 2-year yield also ticked up, steepening the short end of the curve as traders adjusted their expectations for the Fed funds rate path.
Warsh's statement avoided the programmatic speeches or interviews that many market observers had anticipated from a new chair.