Why the Fed Just Broke 18 Years of Convention

The Federal Reserve rate decision to hold instead of hike stunned markets after new chair Kevin Warsh talked tough on inflation then blinked. Shriya Samarth, StoneX Head of Rates, EMEA, breaks down why the Federal Reserve and Bank of England holds drew opposite market reactions. Long-dated Treasury yields climbed after the hold, with the 30-year reaching its highest since 2007 as the curve bear steepened and traders doubted the new chair's credibility. Andrew Bailey and the Bank of England paused the same day yet were read as dovish, given how U.K. gilts react to oil and the Strait of Hormuz before U.S. Treasuries. 0:00 A Fed Pause No One Priced In 0:49 Warsh Talks Tough Then Holds 1:11 Inflation Reads as Transitory 2:04 The Long End Bears the Brunt 3:02 Bank of England Gets a Pass 3:24 Why U.K. Gilts Feel Oil First Discover Actionable Insights with StoneX Market Intelligence: https://shop.stonex.com/products/stonex-essential-bundle?selling_plan=4455759972&variant=45955323625572&utm_source=youtube&utm_medium=social&utm_campaign=sxtv_guest_shriya_samarth&utm_content=share Like and subscribe for more financial market insights. #StoneX #FederalReserve #ShriyaSamarth #BankOfEngland