Analysis: Fed Chairman Warsh's credibility in question after leaving interest rates unchanged

Traders work after a Federal Open Market Committee (FOMC) meeting on the floor of the American Stock Exchange (AMEX) at the New York Stock Exchange (NYSE) in New York, US, on Wednesday, July 29, 2026. Michael Nagle | Bloomberg | Getty ImagesFor a Federal Reserve chairman who prizes credibility above all other virtues, the market's reaction to Kevin Warsh's remarks Wednesday must have been painful. Warsh hosted a press conference Wednesday afternoon following a meeting of the Federal Open Market Committee, which voted 9-3 to leave interest rates unchanged. It was just the second such meeting since Warsh became head of the Fed on May 22. Investors responded by sharply lowering the chances that the Fed will raise interest rates at its next meeting but also raised the yields on long-term government debt. After the press conference, the yield on the 30-year Treasury hit its highest level since 2007, while the yield on the 2-year Treasury fell. The chances that the Fed would leave interest rates unchanged at its next meeting jumped by 20 percentage points to 45%, according to CME FedWatch.Read more CNBC politics coverageThat dynamic suggests investors believe the Fed won't act immediatel...