Ed Yardeni: Warsh is pushing down the 10-year Treasury yield with a hawkish stance on inflation

Odaily Planet Daily News Ed Yardeni, President and Chief Investment Strategist at Yardeni Research, said he believes Warsh is trying to reduce borrowing costs through a hawkish stance, namely pushing down government bond yields that impact mortgage rates and auto loans. He stated that a new agreement has been reached between the Treasury and the Federal Reserve aimed at pushing down the 10-year Treasury yield. Bessent and Warsh are working as a team and have convinced Trump that the best way to lower 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 recognition of this. In a speech at the Economic Club of New York on June 23, Bessent said: "More governments have been toppled by the bond market than by howitzers."