Most Hawkish Jackson Hole Speech Since 2009! Warsh's Debut Lifts 2-Year Treasury Yield by Over 10 Basis Points

The 2-year Treasury yield rose more than 10 basis points intraday to a one-month high. Measured by the immediate move in the 2-year yield after the speech, the market reaction to Warsh's remarks even exceeded those of Powell's Jackson Hole speeches in 2022 and 2023. Swap markets are now pricing in the possibility of multiple Fed rate hikes before July next year.