U.S. short-term Treasury yields rose after Federal Reserve Chair Kevin Warsh said policymakers would have work to do if they were not confident that underlying inflation was returning to the central bank’s 2% target. The two-year Treasury yield climbed 6.6 basis points to 4.29%, its highest level in a month, while the 10-year yield rose 1 basis point to 4.682% and the 30-year yield fell 2 basis points to 5.17%. Markets priced a 46% chance of a rate increase next month, up from 35% on Thursday, according to CME data. The dollar index rose 0.4% to 99.55, while U.S. stocks were little changed. Analysts described the remarks as somewhat hawkish but noncommittal, with upcoming labor-market and inflation data likely to influence the timing of any move. Warsh also discussed possible new economic models, artificial intelligence as an economic tool, monetary aggregates and the Federal Reserve’s balance sheet, prompting debate over whether a policy shift could conflict with Treasury market interventions.