Chart of the Day: Why the Fed Cannot Control Long-Term Interest Rates

The 10-year Treasury yield has surpassed 5% for the first time since 2023, a level not seen since 2007. Sean Hagan explains that this trend reflects fiscal dominance rather than purely inflation-driven factors. The analysis highlights the limitations of Fed Chair Kevin Warsh's influence, noting that while he controls the front end of the yield curve, the primary market pressure remains elsewhere.