Treasury yields have risen sharply, with 30-year Treasuries near 5.3%, a level not seen since 2007, and 20-year yields around the same mark. The move has followed softer inflation and labor data, which have reduced expectations for Federal Reserve rate hikes that markets had already priced in, while yields remained elevated after Fed chairman Kevin Warsh’s latest press conference. Some analysts say the bond market is testing Warsh’s credibility, pointing to a higher term premium and bear steepening, when longer-term yields rise faster than shorter-term yields, after his first two Federal Open Market Committee (FOMC) meetings. Warsh has declined to offer forward guidance and has emphasized bringing inflation to 2%, saying the committee had unambiguously and unanimously decided to deliver on that goal. Randall Kroszner, a University of Chicago Booth School of Business economics professor who previously worked closely with Warsh at the Federal Reserve, said a new chair typically faces a teething process and defended Warsh’s effort to change the Fed’s communication strategy. Kroszner said Warsh would monitor markets without becoming subordinate to them. Economists remain divided: former Federal Reserve official Claudia Sahm called Warsh long on symptoms and short on solutions, while Jeremy Siegel said Warsh had fallen short of explaining the economic framework behind his decisions. Kroszner nevertheless said Warsh was asking important questions through task forces examining current Fed practices and seeking outside input.