Warsh Under Fire as Bond Market Demands Action from Federal Reserve

The Federal Reserve's new chairman, Kevin Warsh, is facing criticism for his handling of the economy. After a recent press conference, investors were left feeling uncertain about the Fed's willingness to support rate increases to combat inflation.

According to the WSJ, the bond market has sent a clear message to Warsh: 'Don't try that again.' Yields on longer-term U.S. Treasurys held near their highest levels in 19 years, indicating concerns that the Fed would wait too long to lift rates and then have to raise them aggressively down the road.

The market is demanding action from Warsh, not just words. Investors want to see a rate hike in September or face a damaging increase in rates on everything from mortgages to corporate debt.