“A top Federal Reserve official has warned this week’s sell-off in U.S. Treasuries is a signal that the central bank must earn its ‘credibility’ on fighting inflation by backing up its rhetoric with interest rate rises,” the Financial Times reports.

Said St. Louis Fed President Alberto Musalem: “Mr Market spoke this week, and I took a signal from it. The signal emphasized to me that we need to continue to earn our credibility every day with both effective communications and actions as needed.”

“Kevin Warsh is considering reducing the number of regularly scheduled meetings at which the Federal Reserve sets interest rates, a potentially seismic move that would mark the most significant change in how the central bank operates in years,” the New York Times reports.

“The Federal Reserve’s 12-person policy committee meets eight times a year and votes on whether to lift, lower or hold borrowing costs. Mr. Warsh raised the idea of changing the frequency of those meetings at the Fed’s gathering this week.”

Bloomberg: Warsh’s Fed is “upending markets.”

“Federal Reserve officials held interest rates steady Wednesday over the objections of three bank presidents who wanted an increase, underscoring how pressure is building inside the central bank to act on inflation that has run above its target for five years,” the Wall Street Journal reports.

CNBC: Warsh’s plan for a more opaque Fed will get put to the test by markets on edge.

“Ask Kevin Warsh how the Federal Reserve should think about inflation, talk to markets or weigh the impact of artificial intelligence on the economy, and the new chair has a stock answer: There’s a task force for that,” the Washington Post reports.

“Five new task forces, in fact. Roughly two months into his tenure, Warsh has handed panels of outside experts core questions about Fed policy and said little about where he thinks any of it should land.”

Said Warsh: “If we get policy right — and we will, the inflation surge of the last five years will be a thing of the past.”

“The relentless run-up in Treasury yields reflects the globe’s new economic reality: It takes a much richer reward to persuade investors to lend their money, especially for the longer run,” Axios reports.

“Unlike previous bond sell-offs driven by inflation fears, this one reflects a world in which governments and companies are scrambling for enormous amounts of capital to finance wide fiscal deficits, the AI infrastructure buildout and more.”

”The competition is forcing borrowers to pay more.”

“Federal Reserve chairman Kevin Warsh testified before Congress over two days last week, totaling more than five hours. Yet it was comments from several of his colleagues that gave the clearest picture of what the central bank is likely to do at next week’s policy meeting,” Axios reports.

“It is a central paradox of Warsh’s communications strategy. He is determined to get out of the business of giving markets and the public much guidance on future policy, which means the markets fill in the gaps based on comments from other officials.”

“That isn’t necessarily a bad thing — it preserves flexibility on interest rate policy that was diminished when former Fed chiefs all but preannounced upcoming rate moves.”