US Treasury yields rise as new Fed Chair Kevin Warsh signals no rush to cut rates

Markets repricing the Fed’s near-term path after Warsh’s first policy statement downplays urgency for easing, keeping the door open for higher-for-longer rates.

By Handelsavisen Newsroom · Automated 2026-06-19 08:56 UTC · 1 min read

US Treasury yields climbed on Wednesday as investors digested Federal Reserve Chair Kevin Warsh’s first policy statement, which signaled a cautious approach to interest rate cuts and downplayed the urgency for immediate monetary easing.

The move marks a distinct shift in tone from the previous administration, with Warsh emphasizing the need for sustained evidence of cooling inflation before adjusting policy.

The 10-year Treasury yield rose sharply in the session, reflecting the market’s reassessment of the Fed’s rate path.

Shorter-dated yields also edged higher, compressing the curve as traders pared back expectations for aggressive cuts in the coming months.

The repricing underscores a broader realization that the new chair will prioritize inflation stability over rapid stimulus, even as economic data shows mixed signals.

Warsh’s statement, delivered ahead of the upcoming FOMC meeting, highlighted the committee’s commitment to data-dependent decision-making while acknowledging the risks of moving too quickly.