The Fed will have to raise interest rates in July to appease ‘bond vigilantes,’ Yardeni says

From cnbc.com

Sent to the Federal Reserve to lower interest rates, incoming Chair Kevin Warsh instead may have to push for higher levels to establish credibility, market veteran Ed Yardeni said. If the new central bank leader fails to signal that policymakers are attuned to inflation pressures, it could risk further market wrath in the form of escalating Treasury yields, added Yardeni, the originator of the term “bond vigilantes” to describe such incidents of investor unrest. “Warsh is set to chair the June Federal Open Market Committee (FOMC) meeting, but who’s actually in the monetary-policy driver’s seat? We’d argue ... (full story)