Treasury yields continue to climb, with 30-year Treasuries reaching around 5.3%, levels not seen since 2007. The bond market is currently testing Federal Reserve chairman Kevin Warsh, whose communication strategy and refusal to provide forward guidance are creating tensions. However, Randall Kroszner, a former colleague of Warsh at the Fed, says he remains firm in his intention to bring inflation down to 2% and does not intend to let market movements dictate his policy. Economists remain divided on Warsh’s approach, with some regretting a lack of clarity in explaining the economic framework behind his decisions.
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