Real Yields Rise Above 2% - Is The Market Doing The Fed
James Picerno·2026-06-23·via All Articles on Seeking Alpha
Summary
The new Fed Chair, Kevin Warsh, wants the bond market to take the lead in pricing interest rates—effectively shifting more of the central bank’s traditional role to market forces.
The ongoing rise in real (inflation-adjusted) yields suggests investors are doing exactly that in response to the recent jump in inflation.
The rise in real yields above 2% suggests the market is recalibrating and signaling that tighter policy may be needed.
welcomia/iStock via Getty Images
The new Fed Chair, Kevin Warsh, wants the bond market to take the lead in pricing interest rates—effectively shifting more of the central bank’s traditional role to market forces. The ongoing rise in real (inflation-adjusted) yields suggests investors are doing
