US Treasury yields hit 19-year high as Fed holds rates

Financial markets delivered a sharp rebuke to the Federal Reserve on Thursday, July 30, 2026, sending long-term bond yields to a 19-year high as investors questioned the credibility of new Chair Kevin Warsh’s inflation-fighting resolve. The dramatic selloff followed the central bank’s decision to hold its benchmark interest rate steady for a seventh consecutive month, a move that exposed deepening internal divisions and left traders doubting the Fed’s willingness to act.

The Federal Open Market Committee voted to maintain the federal funds rate in a range of 3.5% to 3.75%, where it has stood since a cut in December 2025. The decision, however, was not unanimous. Three committee members dissented in favor of an immediate rate increase, marking the most officials to break ranks in a single direction in a decade and signaling a growing policy rift. The move comes just over two months after Warsh was elevated to the chairmanship by President Donald Trump, who had previously criticized the Fed under former Chair Jerome Powell for not cutting rates more aggressively, raising concerns about the central bank’s political independence.

In a post-meeting press conference, Warsh reiterated...