Markets Agree With Trump, Not Warsh

Jackson Hole remarks by Warsh boosted odds of a September rate hike, but the bond market remains skeptical of the Fed’s credibility. Long-term yields are climbing, with the 10-year at 4.8% and the 30-year near 5.28%, implying markets expect inflation to stay above target. Net: upward pressure on the yield curve suggests a tougher policy stance than investors are willing to fully underwrite.