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2026-09-15T03:47:37.000Z

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The Warsh Dilemma on Interest Rates

The Warsh Dilemma on Interest Rates

The article discusses the U.S. Federal Reserve's stance on raising interest rates amid ongoing inflation pressures and a deteriorating bond market. Central Bank President Kevin Warsh noted that inflation remains high, increasing the likelihood of two or more rate hikes at the upcoming meeting, especially as 10-year Treasury yields have risen to their highest levels in years, raising concerns about their impact on the U.S. and global economies. Sources predict that the trend will favor raising interest rates to regain control over inflation, despite potential risks to the stock and housing markets, as the challenge continues to balance inflation control with maintaining economic credibility.

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