Fed Holds Rates, Trump Calls Warsh 'Brilliant Guy'

The Fed's decision to hold rates steady is a credibility disaster for Kevin Warsh. Bond markets revolted, sending the 30-year Treasury yield to its highest level since 2007, signaling deep investor doubt that inflation will ever get tamed. Warsh promised zero tolerance for elevated inflation but delivered zero action — and markets are now pricing in the consequences of a Fed chair who talks tough but won't pull the trigger.