Analyst: Walsh is using inflation hawks to put 10-year U.S. Treasury yields on a leash

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Jinse Finance reported that on July 1, Ed Yardeni, President and Chief Investment Strategist of Yardeni Research, said that he believes Warsh is trying to lower borrowing costs through tough rhetoric—by pushing down government bond yields that affect mortgage rates and auto loans: "We believe a new deal has been reached between the Treasury and the Federal Reserve to suppress the 10-year Treasury yield. Bessent and Warsh are working as a team and have convinced Trump that the best way to lower borrowing costs is to take a tough stance on inflation and raise interest rates when necessary. This should push down bond yields, thereby stimulating the economy." Bessent recently acknowledged the influence of the bond market, and Trump's recognition of this. In a speech at the New York Economic Club on June 23, Bessent said: "Bonds have overthrown more governments than howitzers."
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