Warsh's Credibility Boost in Bonds Is Bessent’s Comeuppance

The stunning rise in US borrowing costs has been attributed to a panoply of factors, both bad and good, including warm inflation, persistently large budget deficits and even strong economic growth, which may be boosting demand for capital. But the latest leg up in Treasury yields looks more like a credibility windfall for Federal Reserve Chair Kevin Warsh. Nestled in the details of the yield curve is a newfound market faith that the rookie Fed chair will meet the challenges of the day with the