U.S. Federal Reserve Chairman Kevin Warsh speaks during a news conference following a meeting of the Federal Open Market Committee (FOMC) in Washington, DC, U.S., Wednesday, June 17, 2026.
Al Drago | Bloomberg | Getty Images
THE 2-year Treasury bill The yield remained relatively unchanged Thursday after jumping Wednesday in reaction to the conclusion of Kevin Warsh’s first meeting as Federal Reserve chairman.
The 2-year yield, which more closely tracks the Federal Reserve’s short-term interest rate policy, slipped less than a basis point to 4.155%. This follows a advance of more than 16 basis points Wednesday – the biggest increase during a Fed meeting day since March 2008, according to MUFG.
The yield on the US Treasury at 10 years rating – the key benchmark for mortgages, auto loans and credit card debt – fell more than 2 basis points to 4.437%. The most dated 30-year Treasury bond the yield fell 3 basis points to 4.897%.
One basis point is 0.01%, and yields and prices move in opposite directions.
Shorter-dated Treasuries continued to react to the Federal Reserve’s June policy meeting.
Kevin Warshthe first gathering as Federal Reserve The president ended Wednesday with a more hawkish bias toward interest rates from the 12 voting members of the Federal Open Market Committee, and a nod to possible future rate hikes. At the meeting, the committee deleted key parts of a significantly shorter policy statement that previously indicated a bias toward future rate cuts.
The Fed kept the benchmark federal funds rate unchanged between 3.5% and 3.75%.
To complicate the picture, Warsh decision to abstain to submit a rate forecast. He confirmed to a press conference after the meeting, he declined to share his own forecasts and would form five working groups to examine the Fed’s major operations.
“I didn’t submit a point for myself,” Warsh said. “It doesn’t help the conduct of politics.”
Market commentators were relieved that Warsh’s first speech went off without a hitch.
“What’s interesting about Warsh’s early FOMC results is a clear message to markets that the Federal Reserve views inflation as a problem to be solved, and if it identifies an inflation problem, it is prepared to act,” ING rates analysts wrote in a note published Thursday.
“This isn’t exactly what was expected when President Trump gave Warsh the job. But it adds a layer of credibility to Warsh’s FOMC,” ING added.
Byron Anderson, head of fixed income at Laffer Tengler Investments, said the world is “going back in history to when markets were reacting to the Fed and not the Fed reacting to markets.”
Shorter-term yields also fell on Thursday following the release of the latest US economic data.
Initial jobless claims for the week ended June 13 were slightly higher than expected, at 226,000. That was an increase of 4,000 from the previous week and higher than the 225,000 economists surveyed by Dow Jones had expected. Additionally, the Philadelphia Fed’s manufacturing index jumped to 10.3 in June, up from -0.4 in May and above the consensus estimate of 9.8.
“The economy faces no significant downside risks right now, so Fed policymakers can keep rates steady and do nothing,” said Chris Rupkey, chief economist at FWDBONDS.
— CNBC’s Jeff Cox and Lisa Kailai Han also contributed to this report.
