MacroVoices · Thursday, October 1, 2026
David Rosenberg attributes the rise in real interest rates primarily to a regime change at the Federal Reserve, specifically under Chairman Warsh, rather than government debt levels. He notes that while corporate credit demand is up due to increased CapEx by hyperscalers, the Fed's hawkish stance and policy shift are the main drivers affecting the bond market.
“The biggest change has been the reset of Fed expectations.”
“What's changed the most? is we have regime change at the Fed.”
“So, well over 100 basis points across the treasury curve. is because the market has reset. from an accommodative Fed to a tighter Fed. The Fed has taken the cost to carry away,”