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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a sign of shifting monetary policy tone, new Federal Reserve Chair Kevin Warsh is helping coax Treasury yields lower by talking tough on inflation, according to media reports. His strong stance is seen as anchoring inflation expectations, reducing risk premiums in fixed-income markets.
The move comes as markets digest recent economic data: the US Services PMI edged up to 51.3 in June, per the flash reading released June 23. Meanwhile, Canada's annual inflation rate hit 3.2% in May, above forecasts, underscoring persistent global price pressures that may support the Fed's hawkish bias.
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Sign InTraders now eye upcoming Fed minutes and speeches for cues on rate cuts. With yields under pressure, the bond rally could extend if Warsh maintains his firm tone in future appearances.