Ed Yardeni: Warsh Is Pushing Down 10-Year Treasury Yields Through Hawkish Inflation Stance

According to Odaily, Ed Yardeni, President and Chief Investment Strategist at Yardeni Research, stated that he believes Warsh is attempting to lower borrowing costs through a hawkish stance, namely pushing down the yields on government bonds that influence mortgage rates and auto loans. He indicated that a new understanding has been reached between the Treasury Department and the Federal Reserve aimed at suppressing 10-year Treasury yields. Bessent and Warsh are working as a team and have convinced Trump that the best way to reduce borrowing costs is to take a tough stance on inflation and raise interest rates if necessary.

Bessent recently acknowledged the influence of the bond market, and Trump's agreement with this view. Speaking at the Economic Club of New York on June 23, Bessent stated: "Bond markets have overthrown more governments than howitzers have."