Warsh Welcomes Yield Spikes as 'Change for the Better'

Federal Reserve Chair Kevin Warsh has welcomed yield spikes as a positive development for the economy. In his prepared remarks, he noted that Treasury yields between FOMC meetings have been among the most significant in the last two decades.

Warsh attributed this increase to market participants learning to play the ball and not the referee, allowing prices to respond freely. He emphasized that this is a 'change for the better' and that they're just getting started.

The FOMC's decision to keep the federal funds rate steady at 3.5-3.75% was met with split opinions among market participants. Warsh stated that the Fed does not interpret changes in bond yields as a need to raise rates to meet expectations, but rather positions itself for its next move.