Fed Chair Warsh: Treasury Yields Rise on Multiple Factors, Including Stronger Economy

Warsh's refusal to rank the drivers is the tell: a stronger economy, capital competition and geopolitics all point to higher term premia, but each carries a different policy signal. If growth is the dominant factor, higher yields are benign; if capital competition or geopolitics dominate, they reflect tighter global liquidity, which historically pressures risk assets including crypto and tokenized RWAs. The open question is whether subsequent Fed commentary narrows the list, since that would clarify how much of the yield move is cyclical versus structural.