Fed’s Warsh: ‘We May Have Work to Do’—2-Year Yield Jumps

Investors reacted swiftly to Federal Reserve Chair Kevin Warsh’s hawkish keynote address at the Jackson Hole economic symposium, sending the 2-year Treasury yield sharply higher. Warsh signaled that the central bank may not be finished with its fight against inflation, saying, “We may have work to do.” The yield on the 2-year note, which is highly sensitive to Fed policy expectations, rose as traders adjusted their bets on future interest rate cuts. Warsh’s comments suggest that the Fed could hold rates steady or even hike again if inflation data remains stubborn. Markets now await further economic data to gauge the Fed’s next move.