Kevin Warsh, who became Federal Reserve Chair on May 22, 2026, has adopted a «no tolerance» policy on inflation, confirming that the 2% target is non-negotiable. The 10-year US Treasury yield is currently hovering between 4.41% and 4.5%, with forecasts projecting a decline to approximately 4.25% by year-end if inflation continues its downward trajectory. Mortgage rates, which are tied to this yield, should follow the same downward path. In parallel, cryptocurrency markets, including Bitcoin and crypto ETFs, are reacting to these developments, as the opportunity cost of holding non-yielding assets like Bitcoin decreases when yields on safe assets decline.
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