Markets Challenge Fed's Inflation-Fighting Credibility -- Market Talk

0554 GMT - U.S. rates markets are expected to remain exposed to rising pressure in the near term as the market continues to challenge the Federal Reserve's inflation-fighting credibility, TD Securities' analysts say in a note. "Hawkish comments by FOMC members once the communication blackout ends should help restore some of the Fed's inflation fighting credibility, but we see significant risk of 10-year Treasurys breaking through key technical levels in the coming days," they say. Markets were giving Fed Chairman Kevin Warsh credibility on bringing down inflation following his first press conference in June, but the honeymoon period has ended with a bang as long-end rates have moved sharply higher amid a rebound in inflation expectations, they say. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

July 30, 2026 01:54 ET (05:54 GMT)