Fed Credibility Under Fire as Treasury Yields Surge

The US Treasury yield has surged to its highest level in nearly two decades after the Federal Reserve maintained interest rates under new Chair Kevin Warsh.

The 30-year bond yield reached 5.24 percent, while the 10-year yield jumped to 4.71 percent following the Fed's announcement that it would not raise rates or signal future moves.

This decision has led investors to question the Fed's commitment to price stability, according to Seema Shah, Principal Asset Management's chief global strategist.

'The disconnect between the Fed's stated commitment to price stability and its decision to remain on hold has raised questions about the consistency of the policy message,' Shah said.