US President Donald Trump has engaged in periodic telephone conversations with Federal Reserve Chair Kevin Warsh since the latter assumed office, according to people familiar with the matter.
The disclosure marks the latest escalation in the administration's efforts to exert direct influence over the central bank's monetary policy decisions, particularly regarding interest rate levels.
The reports of direct contact between the White House and the Fed chair have contributed to heightened uncertainty in US Treasury markets.
Traders are increasingly pricing in the risk that political pressure could distort the Fed's data-dependent mandate, leading to more volatile yield movements as investors reassess the independence of the central bank.
The 2-year and 10-year Treasury yields have seen increased intraday swings, reflecting the market's sensitivity to any signal that the Fed's policy path may be subject to external political interference.
This development follows a period of intense public criticism from President Trump regarding the Federal Reserve's governance structure and its stance on interest rates.