Jon Hilsenrath

The Treasury Borrowing Advisory Committee warned that the government faces a $1.45 trillion funding shortfall in fiscal 2027–28. To finance a roughly $2 trillion annual deficit, Scott Bessent leaned heavily on cheaper short-term rates today, which exposes the government to inflation and rising interest costs. Experts also warn of potential strain due to anticipated converging waves of long-term supply from both Treasury and the Federal Reserve.

Kevin Warsh's first meeting as Federal Reserve chairman resulted in the central bank holding benchmark rates steady, with a hawkish tone noted. The Fed's decision includes four dissenting votes, the most since 1992, and uncertainty remains about future rate predictability and borrowing costs.

Kevin Warsh, confirmed as Federal Reserve chair, emphasized a hawkish stance on inflation during his first press conference, rejecting dovish arguments and keeping benchmark rates unchanged. Markets reacted negatively, with stock indices falling and Treasury yields rising, as Warsh reiterated the Fed's commitment to price stability.

Economist Jon Hilsenrath explains the recent spike in the 30-Year Treasury yield above 5%. The analysis focuses on factors driving the increase in long-term U.S. bond yields.

President Trump hosted a swearing-in ceremony for Kevin Warsh as the new Federal Reserve Chair. Jon Hilsenrath, a visiting scholar at Duke University, analyzed the challenges Warsh will face in the coming months.