Warsh's Words Move US Treasuries Market Despite Central Bank Focus
Federal Reserve Chairman Kevin Warsh has been at the center of attention in the US Treasuries market, despite his efforts to shift focus away from central bank commentary. Since he took office in May, three significant daily moves in the yield curve have followed his appearances: two post-policy meeting press conferences and a speech at the Fed's annual conference in Jackson Hole, Wyoming.
The yield curve has moved in response to Warsh's comments, despite his stated desire for investors to react to underlying economic changes. The recent movement has some questioning whether the market is too closely tied to the Fed chairman's words.
No one expects a dramatic change from Warsh, who seems focused on guiding market expectations rather than directly influencing them.