Fed chair Kevin Warsh said financial markets have already priced most of the
Fed's tightening since the June meeting and rejected describing today's decision
to hold rates as a 'pause'. U.S. 2‑yr and 10‑yr Treasury yields have risen about
20bps since mid-June. Warsh said markets have been repricing on inflation prints
and resilient growth, lifting both nominal and real yields, and that leaving the
policy rate unchanged today is 'the beginning, not the end' of the policy story.
