How Warsh Left Investors Baffled at His Second Press Conf…

Kevin Warsh, the Federal Reserve chairman, caused confusion among investors and economists during a recent press conference. He expressed uncertainty about future interest rate adjustments and did not clarify how the Fed would respond to various economic scenarios. Despite his remarks, Warsh praised the rise in bond yields since the last meeting, suggesting it might alleviate the need for rate hikes to control inflation. The market reacted negatively, leading to a sell-off of 30-year Treasury bonds and a reduction in expectations for upcoming rate hikes.

The Fed:

New Inflation Roadmap

Investors Baffled

Rates Hold Steady

Fed Dissenters

Wall Street’s Harsh Verdict

Lisa Cook

BackForward

Kevin Warsh, chairman of the US Federal Reserve, during a news conference in Washington, on July 29.

Kevin Warsh, chairman of the US Federal Reserve, during a news conference in Washington, on July 29.Photographer: Al Drago/Bloomberg

Economics

FacebookXLinkedIn

EmailLink

Gift

FacebookXLinkedIn

EmailLink

Gift

By Catarina Saraiva

July 30, 2026 at 3:38 PM EDT

BookmarkSave

Kevin Warsh’s second press conference as Federal Reserve chairman puzzled economists and investors, who appear unconvinced the new central bank chief is as committed to stamping out inflation as he says.

Warsh, who has said he won’t share his view of when or whether the Fed might adjust interest rates, went further on Wednesday and refused to explain how policymakers might react to different economic outcomes. He praised a run-up in bond yields since the Fed’s last meeting, arguing it was helping the central bank and could mean officials don't need to raise rates to bring down inflation. Investors responded by dumping 30-year Treasury bonds and dialed back expectations for rate hikes over the coming months.

Confidential tip?\ Send a tip to our reporters

Site feedback:\ Take our SurveyNew Window

Before it's here, it's on the Bloomberg Terminal\ \ Bloomberg TerminalLEARN MORE

Read Original at Bloomberg.com →

How Warsh Left Investors Baffled at His Second Press Conference