Warsh Effect Boosts Treasuries as Trump Threatens EU Tariffs

Treasury yields rose on September 17th, 2026, after the Federal Reserve increased interest rates, boosting confidence in Chair Kevin Warsh's commitment to fight inflation. The decision sparked a rally in US equity futures and Treasuries, indicating investors believe Warsh is serious about curbing price growth.

President Trump also weighed in on the market, threatening to impose significant tariffs on the European Union if he perceives its efforts to strengthen ties with Canada as detrimental to the United States. This warning added to the bullish sentiment surrounding Treasuries, pushing yields higher across the board.

Jane Foley of Rabobank discussed the market reaction to the Fed's decision in an interview, noting that investors are becoming increasingly confident in Warsh's ability to tackle inflationary pressures.