“Many Federal Reserve officials believed that the central bank would have to raise interest rates if inflation did not ease, according to the minutes released on Wednesday from the Fed’s July 28-29 policy meeting,” Axios reports.

Bloomberg: Fed minutes show many officials said rate hikes may be needed.

“The cost for the U.S. government to borrow money hit its highest level since 2007 on Tuesday, the latest in a worrisome series of developments that have rattled global markets and American consumers alike,” the Washington Post reports.

“The sell-off in U.S. Treasury securities — at $31 trillion the world’s largest financial market — comes amid surging public debt in the United States, Europe, Japan and Canada; renewed conflict in the Middle East; and uncertainty about the Federal Reserve’s intentions.”

”The rise in long-term Treasury yields creates another headwind for the U.S. economy, one that will lift borrowing costs for businesses and consumers as well as official Washington.”

Bloomberg: Global bond slump raises Fed questions.

“Public opinion about the economy appears to be souring further this month, per the preliminary release of the University of Michigan’s consumer sentiment index,” Axios reports.

“The steepest month-to-month drop in sentiment was among survey respondents who identify as Republicans, with their outlook now 19% below readings from just before the Iran war and at the lowest since the 2024 election.”

“Federal Reserve chairman Kevin Warsh is attempting a high-wire act: He’s trying to fundamentally rethink the central bank’s approach to guiding the economy, while also using its standard policy toolkit to bring down stubbornly persistent inflation,” Axios reports.

“A market blowup late last month showed the perils of trying both at the same time.”

“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.”