Treasuries Recover as Warsh's Fed Appointment Fuels Yield Surge
WHO:
Bloomberg Markets - Kevin Warsh is the chairman of the US Federal Reserve.
CNBC - President Trump appointed Kevin Warsh to the position.
WHAT:
Bloomberg Markets - Traders are betting on interest-rate hikes as soon as next month following Kevin Warsh's debut press conference, where he emphasized that the central bank would not tolerate high inflation.
Bloomberg Markets - The Philadelphia Fed manufacturing index jumped to 10.3 in June, rising from a minus 0.4 reading in May and above the consensus estimate of 9.8.
Bloomberg Markets - The Treasury market saw a record surge in futures trading that underpins bets that the Federal Reserve’s next move will be to boost interest rates.
Bloomberg Markets - Traders began betting on interest-rate hikes as soon as next month following Kevin Warsh's debut press conference, where he emphasized that the central bank would not tolerate high inflation.
Bloomberg Markets - Jennifer Lee, Senior Economist at BMO Capital Markets, discussed expectations for the Federal Reserve as Kevin Warsh settles into his role as chair.
CNBC - Kevin Warsh's first gathering as Federal Reserve chairman ended with a more hawkish bias toward interest rates from the 12 voting members of the Federal Open Market Committee.
CNBC - Warsh confirmed at a news conference that he had declined to share his own forecast, stating, "I did not submit a dot for me. It's not helpful in the conduct of policy."
CNBC - Market analysts noted that Warsh's first address conveyed a clear message that the Federal Reserve sees inflation as an issue to be solved, with readiness to act if an inflation problem is identified.
Bloomberg Markets - US Treasuries recovered from a selloff.
CNBC - The yield on the 10-year U.S. Treasury note dipped more than 3 basis points to 4.428%.
CNBC - The 30-year Treasury bond yield fell more than 5 basis points to 4.871%.
CNBC - The 2-year yield slipped less than 1 basis point to 4.155%.
CNBC - The 2-year Treasury note yield had an advance of more than 16 basis points on a previous Wednesday, marking the biggest jump on a Fed meeting day since March 2008.
CNBC - The Federal Open Market Committee (FOMC) kept the benchmark federal funds rate unchanged at 3.5%-3.75%.
CNBC - Initial jobless claims for the week ended June 13 came in at 226,000, a 4,000 increase from the previous week.
CNBC - The Philadelphia Fed manufacturing index rose to 10.3 in June, up from a minus 0.4 reading in May.
WHERE:
CNBC - The FOMC meeting took place in Washington, DC.
WHEN:
CNBC - Kevin Warsh's first meeting as chair of the Federal Reserve concluded on June 17, 2026.
CNBC - The jobless claims data is for the week ended June 13.
WHY:
Bloomberg Markets - Hawkish signals from the Federal Reserve at Kevin Warsh’s first meeting as chair are increasing pressure on corporate credit spreads, which are near historic lows, according to analysts.
CNBC - Analysts indicated that Warsh's approach adds a layer of credibility to his leadership of the Federal Open Market Committee.
CNBC - Warsh positioned himself as a credible figure to fight inflation.
CNBC - The FOMC removed key language from the policy statement that indicated a bias toward future rate cuts.
HOW:
Bloomberg - Kay Haigh at Goldman Sachs Asset Management stated that two-year Treasury yields may become more volatile as Warsh charts a new course for central bank communications.
CNBC - Warsh abstained from submitting a rate forecast and confirmed he would form five task forces to review major Fed operations.
CNBC - Market commentators noted that Warsh's first address ran smoothly, indicating a clear message from the Fed regarding inflation.
(UPDATED June 18, 2026 21:40 UTC)
Traders are increasingly betting on interest-rate hikes as soon as next month, following Kevin Warsh's debut press conference where he made it clear that the central bank will not tolerate high inflation. In related news, the Philadelphia Fed manufacturing index saw a significant jump to 10.3 in June, up from a minus 0.4 in May and surpassing the consensus estimate of 9.8. Additionally, the Treasury market experienced a record surge in futures trading, reflecting growing expectations that the Federal Reserve's next move will be to raise interest rates.
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(UPDATED June 18, 2026 18:01 UTC)
Traders are starting to place bets on interest-rate hikes as early as next month, following Kevin Warsh's debut press conference where he stressed that the central bank will not tolerate high inflation. Jennifer Lee, a Senior Economist at BMO Capital Markets, shared her insights on what to expect from the Federal Reserve as Warsh settles into his new role as chair. This shift in market sentiment reflects growing concerns about inflation and the central bank's response.
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(UPDATED June 18, 2026 16:11 UTC)
In a significant development, Kevin Warsh's first gathering as chairman of the Federal Reserve concluded with a more hawkish stance on interest rates from the voting members of the Federal Open Market Committee. During a news conference, Warsh emphasized that he chose not to share his own economic forecast, stating, "I did not submit a dot for me. It's not helpful in the conduct of policy," which analysts believe adds credibility to his leadership. Market experts, including Kay Haigh from Goldman Sachs Asset Management, suggest that two-year Treasury yields could see increased volatility as Warsh establishes a new direction for central bank communications.
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(UPDATED June 18, 2026 14:07 UTC)
Kevin Warsh, appointed by Trump, is now the chairman of the US Federal Reserve, and he recently concluded his first meeting in Washington, DC. During this meeting, the Federal Open Market Committee decided to keep the benchmark federal funds rate unchanged at 3.5% to 3.75%, while US Treasuries showed signs of recovery from a recent selloff, with the yield on the 10-year note dipping to 4.428%. Additionally, initial jobless claims for the week ended June 13 rose to 226,000, and the Philadelphia Fed manufacturing index improved significantly to 10.3 in June, up from a minus 0.4 in May.