Kevin Warsh, U.S. President Donald Trump’s nominee for Chair of the Federal Reserve, testifies during his Senate Committee on Banking, Housing, and Urban Affairs confirmation hearing in the Dirksen Senate Office Building on April 21, 2026 in Washington, DC.
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U.S. Treasury yields rose on Wednesday after the Kevin Warsh-led Federal Reserve held interest rates steady and removed key language indicating a bias towards future cuts, with many central bank officials signaling potential hikes in 2026.
The 2-year Treasury note yield, which more closely tracks short-term Fed interest rate policy, climbed 9 basis points to 4.134%. The longer-dated 30-year Treasury bond yield added less than 2 basis points to 4.946%.
The yield on the 10-year U.S. Treasury note — the key benchmark for U.S. government borrowing — rose less than 4 basis points to 4.467%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
This week’s Federal Open Market Committee meeting marked the first under Kevin Warsh at the helm.
The median estimate for the Fed Funds Rate to end 2026 is now 3.8%, up from 3.4% in the prior projections from March and signaling the committee sees 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 that was likely Warsh.
The FOMC’s post-meeting statement also pared down prior language that hinted towards an easing slant in the future.
“Whilst the statement should turn more hawkish, Warsh may want to communicate his more dovish view, though probably not explicitly,” wrote ING’s senior European rates strategist Michiel Tukker in a note this morning. “He could, for example, reiterate his conviction about AI-related productivity growth, which would justify lower policy rates further in the future.”
— CNBC’s Jeff Cox contributed to this report.
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