Fed Chair Kevin Warsh reaffirms commitment to 2% inflation goal as markets react to mixed Treasury yields and equity declines.
U.S. equities traded lower ahead of Fed Chair Kevin Warsh’s press conference, with the Dow Jones dropping 1.5% to 51,957.19. Treasury yields showed mixed moves, steepening as longer-dated yields rose up to +4.14 bps, while the 2-year yield fell -0.64 bps. Commodities surged, with WTI crude up 6.7% to $84.44 and gold rising 0.9% to $4,065.07.
Markets entered the event with heightened geopolitical and inflation concerns, reflected in oil’s sharp gain and mixed yield movements. The S&P 500 and Nasdaq also declined, down 0.48% and 0.35%, respectively, while Bitcoin held steady near $64,012.
Warsh emphasized the Fed’s resolve to achieve 2% inflation, dismissing any implicit higher target. He noted the economy’s resilience but warned that inflation expectations remain a key focus, with no softening of the central bank’s stance.