Warsh Hints at Using Higher Treasury Yields to Fight Inflation

Federal Reserve Chairman Kevin Warsh has hinted at using higher Treasury yields as an inflation-fighting tool, according to recent comments.

While he hasn't explicitly stated his preference for long rates to rise, Warsh's words suggest the central bank may be comfortable with rising yields to cool inflation.

The 2-year yield surged yesterday to 4.59%, marking the widest premium over the Effective Fed Funds Rate in nearly four years.