Warsh's refusal in his post-FMOC meeting presser to give any forward guidance on raising rates to combat inflation (except to joke that the 10Y was doing the work for the Fed) drew a strong reaction from the bond market, as more fully explained in this WSJ piece. Obviously, with Trump still pounding for rate cuts, Warsh is caught between Trump and the bond market. As far as that struggle goes, don't forget what James Carville said: "I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody." We'll see if Warsh blinks.
[EOP]
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