Treasuries-30-year yields climb to 19-year highs on Fed doubts
TLT•Warsh tone seen as dovish by some analysts
The hawkish market view contrasted with Warsh's tone.
"Chairman Warsh made several dovish comments during his press conference," said David Mericle, chief U.S. economist at Goldman Sachs. "The bond market also took today’s meeting as dovish."
Warsh appeared to downplay AI-related price pressures while hinting that the rise in market interest rates could substitute for a rate hike, though without saying so explicitly, noted Mericle.
President Donald Trump, who hand-picked Warsh, called him "brilliant" following the Fed meeting.
"I know he'd love to see lower interest rates, but he's got a board, and it's a political board, and they want to keep rates up," Trump told reporters in the Oval Office.
Trump has made no secret of his desire to see rate cuts and repeatedly put pressure on the Fed to lower borrowing costs.
