Fed Chair Kevin Warsh has eliminated forward-looking guidance from FOMC statements, a move that has contributed to soaring long-term Treasury yields and increased bond market volatility. The 30-year Treasury yield recently hit a 19-year high, while the 10-year yield is approaching its highest level since the financial crisis, as bond traders sell Treasuries amid reduced transparency and predictability from the central bank. Warsh also wants to deleverage the Fed's balance sheet, which stood at $6.75 trillion as of August 5, 2026, by selling trillions of dollars in long-term assets, a process that could push up borrowing costs and potentially slow the AI-driven stock market rally. Additionally, Warsh has called for rethinking how policymakers measure inflation, criticizing core inflation measures and favoring the trimmed mean rate, while insisting the 2% long-term target is unwavering, leaving economists and Wall Street confounded about future policy actions.
NVIDIA CorporationRising yields from Fed policy changes could slow AI-driven stock rally, affecting NVIDIA.
Fed eliminating guidance and selling assets pushes 10-year yield higher.
Fed policy changes drive 30-year yield to 19-year high.
