Investors urge Federal Reserve Chairman Kevin Warsh to address inflation ahead of Jackson Hole

The long-dated US Treasury market is staging a quiet revolt, and investors want Federal Reserve Chairman Kevin Warsh to do something about it. Since taking over from Jerome Powell on May 22, 2026, Warsh has talked tough on inflation, pledging a “no tolerance” approach to prices that have remained stubbornly above the Fed’s 2% target. The problem: talking tough and acting tough are two very different things, and bond traders can smell the difference. Sixty-five months and counting Inflation has now exceeded the Fed’s 2% target for 65 consecutive months. To put that in perspective, that streak stretches back to roughly early 2021, meaning an entire cohort of college graduates has never experienced on-target inflation during their adult lives. The federal funds rate currently sits at 3.50% to 3.75%, a level that many market participants view as insufficiently restrictive given the persistence of price pressures. And the July 28-29 FOMC meeting underscored just how divided the Fed has become on the question of what to do next. Three regional Fed presidents broke ranks during that meeting, dissenting in favor of raising interest rates. Warsh’s July 30 press conference, meant to project ...