Dan Ives Says Kevin Warsh-Led Fed 'Had No Choice' But to Raise Rates, Calls the Hike a 'Gut Punch' As Trump Renews Calls for 1% Rates

Technology analyst Dan Ives said Wednesday that Federal Reserve Chair Kevin Warsh had no real alternative but to raise interest rates, even as President Donald Trump renewed his demand for rates at 1% or lower.

‘The Bond Market Doesn’t Lie’

In an interview with CCN, Ives said the only way to control high inflation was to raise rates, as the bond market climbs to multi-decade highs.

“The bond market doesn’t lie,” the founder of Yorkville Ives said.

He added that Warsh had “no choice” but to hike and would likely raise rates again, calling the move “a gut punch.”

The Fed raised its benchmark rate by 25 basis points to a range of 3.75%-4.00%, its first hike since 2023, with all 12 voting members unanimously backing the move.

At the time of writing, the 10-year yields were down to 4.98%, while 30-year Treasury yields were at 5.333%.

Warsh Is Becoming An ‘Inflation Warrior’

Ives said Warsh’s tone at the press conference after the rate decision confirmed this isn’t a “one and done” move, calling him an emerging “inflation warrior.”

He noted that a year ago, the idea of a new Fed chair hiking rates going into the fall would have seemed far-fetched and something that’s only happened because of persistent inflation.

U.S. annual inflation held at 3.4% in August, with gasoline rising 3.9% for the month and accounting for more than a third of the overall increase.

Trump Wants the Opposite

Trump renewed his call for drastically lower rates hours after the hike, calling for rates that “should be 1%, or less” given the country’s “Best Credit in the World.”

He argued that the U.S. is “carrying” much of the world through trade deficits and demanded that the Fed lower rates fast.

Price Action: The iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF) closed 0.01% lower on Wednesday at $90.73 and reversed course to climb 0.29% in early premarket trading on Thursday. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) closed 0.36% higher at $81.17 and gained 0.35% in premarket trading.

The iShares 7-10 year Treasury Bond ETF has a Momentum score in the 25th percentile and a negative price trend across the short, medium, and long term.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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