Warsh Cites Strong Economy as Reason for Rising Long-Term Interest Rates

Federal Reserve Chair Kevin Warsh said during a press conference on July 17 that a strong economy was the first reason for recent increases in long-term interest rates. He listed three factors explaining the rise in yields since the last FOMC meeting: economic strength, capital investment, and geopolitics, noting that one of the reasons long-term yields have risen through 2026 is due to the economy becoming more robust. Warsh also stated that a surge in capital investment and funding demands from major investors partially explained the yield increase, adding that global conflict zones are also influencing long-term yields.