Fed Credibility Crisis and Bond Market Vigilantes

Bond markets are doubting Fed Chair Kevin Warsh's commitment to fighting inflation. Long-term yields surged to 2007 highs, 30-year TIPS hit 3%, and the yield curve steepened. Markets price in 63% chance of a rate hike despite Fed holding rates. The fractured 9-3 vote signals internal dissent. This is a live macro signal affecting mortgages, corporate debt, and growth expectations.