Warsh Caught Between Trump and Bond Market Betting on Rat…

Kevin Warsh, the newly appointed Federal Reserve Chairman, faces significant challenges just weeks into his tenure. Inflation is increasing at its fastest rate in three years, prompting dissent among Fed policymakers. Investors are reacting by selling US Treasury bonds and betting on imminent interest rate hikes, contradicting President Trump's calls for lower rates.

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Kevin Warsh, left, and President Donald Trump during a swearing-in ceremony at the White House on May 22.Photographer: Al Drago/Bloomberg

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By Enda Curran, Catarina Saraiva, and Greg Ritchie

June 14, 2026 at 5:00 PM UTC

Updated on June 15, 2026 at 3:45 AM UTC

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Just three weeks into the job, Federal Reserve Chairman Kevin Warsh is already facing an unusually high-stakes test.

Inflation is roaring back at the fastest pace in three years. There’s growing dissent among the central bank’s policymakers. And investors have been dumping US Treasury bonds and piling into bets the Fed will need to start raising rates by December, defying President Donald Trump’s call to lower them instead.

Read Original at Bloomberg.com →

Warsh Caught Between Trump and Bond Market Betting on Rate Hikes