Bloomberg Surveillance · Thursday, July 30, 2026
Federal Reserve Chair Kevin Walsh's recent press conference is being described as 'rocky,' with investors questioning his approach to inflation and forward guidance. The market's reaction, including a dip in the two-year yield, suggests a decrease in certainty about the Fed's commitment to driving inflation back to two percent.
“Well, unfortunately, I thought it was a little bit rocky. It's probably not unanticipated given that chair horse is new in the role.”
“I think he needed to do more to create optionality in September, and he didn't. Do very much of that.”
“So, you know, the data is going to be important over the next couple of months.”
“Marcus didn't like that, and they actually the two year yield went down, and so now markets are less sure that the committee will actually follow through and try to drive inflation back to two percent.”