Kevin Warsh Did Not Impress the Bond Market -- 30-Year Yields Are Up to 5.2%. Here's What This Might Mean for Investors in These 2 ETFs.
Unless the Fed gets tougher on inflation, investors in long-term Treasury bonds will feel the pain.
Overview
At its most recent meeting on Wednesday, the Federal Reserve voted to leave interest rates unchanged at 3.50% to 3.75%. But in his news conference following that meeting, Federal Reserve Chair Kevin Warsh left bond investors unimpressed.
Even though other Fed officials have recently commented that inflation is still too high, Warsh was seemingly unclear about what it would take for the Fed to raise interest rates in the future. Industry analysts quoted by CNBC described Warsh's press conference as "confusing," "contradictory," and creating "questions about the new chair's credibility" in reducing inflation.
Federal Reserve Chair Kevin Warsh. Image source: Federal Reserve.
Details
Source
Originally published at www.fool.com.
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