Warsh's Inflation Comments Spark Rate Hike Fears

Federal Reserve Chairman Kevin Warsh's commitment to fighting inflation has been called into question after his recent remarks on interest rates.

Warsh emphasized that he is dedicated to controlling inflation, but his failure to signal near-term action has left Wall Street questioning his dedication.

The markets showed little immediate reaction after the Fed held rates steady, but Warsh's comments during the post-meeting press conference triggered a selloff in Treasuries, pushing yields sharply higher.

Warsh signaled openness to alternative inflation measures and implied that higher yields had already done some of the Fed's work.