Wealthion · Monday, July 13, 2026
Chris Casey argues that the Federal Reserve, under Chair Kevin Warsh, is likely to raise interest rates due to several factors, including Warsh's stated focus on inflation and the need to reduce the balance sheet. Casey also points to market signals, such as the 10-year Treasury yield being higher than the federal funds rate, as indicators that the Fed tends to follow.
“I do think, um, all things being equal, rate should be higher than they are lower.”
“Two, the market is telling him that rates, um, need to go higher. Remember, the 10 year went up. Right? This whole ask cut and cycle, right? It's actually higher than it was when they started.”
“So whenever the market is higher than the Fed funds rate deviates from the Fed funds rate, the Fed tends to follow it. You could make a good argument, that's all they do. They kind of follow the market.”