SocGen Says Warsh Faces Big Test With Yields Turning ‘Unhinged’

A bond market spooked by fears of accelerating inflation will be an early test for incoming Federal Reserve Chair Kevin Warsh, according to the head of research for Societe Generale Americas.

Warsh, President Donald Trump’s chosen successor to Jerome Powell, is facing mounting evidence that an energy price spike sparked by the Iran war is fueling US inflationary pressures, SocGen’s Subadra Rajappa said Friday on Bloomberg Television’s Surveillance. It will complicate his ability to deliver the lower rates he has championed — and that Trump has demanded.