Bond Market Outpaces Fed as Warsh Faces 'No Good Options'
Dilin Wu, a research strategist at Pepperstone, has stated that the bond market is ahead of the Fed. This means that rising yields on treasuries are not a result of current monetary policy decisions but rather a structural issue in the economy.
Wu warns that Fed Chairman Kevin Warsh is facing difficult choices to address the increasing cost of servicing US bonds. With no easy solutions, Warsh's options are severely limited.