Weekly Commentary: The Warsh Fed

WTI July crude traded above $104 in early Wednesday trading, signaling firm energy prices. Ten-year Treasury yields have risen 90 bps since the Fed began its 175 bps rate-cutting cycle in September 2024, highlighting a notable disconnect between policy easing and longer-end rates. The note is primarily market-level and factual, with limited immediate event risk beyond rates and commodities.

Analysis

WTI July crude traded above $104 in early Wednesday trading, signaling firm energy prices. Ten-year Treasury yields have risen 90 bps since the Fed began its 175 bps rate-cutting cycle in September 2024, highlighting a notable disconnect between policy easing and longer-end rates. The note is primarily market-level and factual, with limited immediate event risk beyond rates and commodities.