Woofun AI reports that Ed Yardeni, President of Yardeni Research, asserts that Federal Reserve Governor Christopher Warsh is employing a hawkish inflation stance to drive down 10-year Treasury yields. Yardeni claims a coordinated effort exists between the Treasury Department and the Federal Reserve to suppress these yields, which directly influence mortgage and auto loan rates.

Yardeni further states that Scott Bessent and Warsh have aligned in convincing President Donald Trump that maintaining a tough stance on inflation, including potential interest rate hikes, is the optimal method to reduce borrowing costs. This follows Bessent’s June 23 remarks at the Economic Club of New York, where he acknowledged the power of bond markets, stating: "Bond markets have overthrown more governments than howitzers have."