Kevin Warsh, U.S. President Donald Trump’s nominee for Chairman of the Federal Reserve, testifies during his Senate Banking, Housing, and Urban Affairs Committee confirmation hearing in the Dirksen Senate Office Building April 21, 2026 in Washington, DC.
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U.S. Treasury yields rose Wednesday after Kevin Warsh-led Federal Reserve kept interest rates stable and removed key language indicating a bias toward future cuts, with many central bank officials signaling potential hikes in 2026.
THE 2-year Treasury bill the yield, which more closely tracks the Fed’s short-term interest rate policy, rose 9 basis points to 4.134%. The most dated 30-year Treasury bond the yield added less than 2 basis points to 4.946%.
The yield on the US Treasury at 10 years rating – the key benchmark for US government borrowing – rose less than 4 basis points to 4.467%.
One basis point is 0.01%, and yields and prices move in opposite directions.
This week’s Federal Open Market Committee meeting marked the first under the leadership of Kevin Warsh.
The median estimate for the federal funds rate through the end of 2026 is now 3.8%, up from 3.4% in the previous March projections, indicating that the committee views at least one rate hike as necessary this year. Complicating the forecast is that one of the 19 officials did not submit a projection and it was likely Warsh.
The post-FOMC meeting statement also lightened up earlier rhetoric that hinted at an easing stance going forward.
“Even if the statement is expected to become more hawkish, Warsh may want to communicate his more conciliatory view, but probably not explicitly,” Michiel Tukker, senior European rates strategist at ING, wrote in a note this morning. “He could, for example, reiterate his belief in AI-related productivity growth, which would justify a further cut in policy rates in the future.”
— CNBC’s Jeff Cox contributed to this report.
