Treasury Market Signals Rates Need to Be Higher

The $31 trillion Treasury market has an unequivocal message for Kevin Warsh’s Federal Reserve: Interest rates aren’t high enough. The reset upwards only intensified last week after the latest read on job growth topped all forecasts, reinforcing a growing conviction that rates need to rise in order to rein in inflation pressures and temper the risk of an AI-induced boom overheating the economy. David Seif, Chief Economist for Developed Markets at Nomura, discusses his expectations for the Fed's...