[The U.S. Treasury yield curve flattened significantly, and Warsh’s anti-inflation commitment eased market concerns] On August 29, Federal Reserve Chairman Kevin Warsh emphasized in a much-watched speech that the Federal Reserve needs to curb prices, which alleviated some of the bond market’s concerns about its credibility in fighting inflation and pushed short-term U.S. Treasury yields higher. Traders are increasing bets that the Federal Reserve could start raising interest rates as soon as next month. This expectation pushed the two-year U.S. Treasury yield to rise by 10 basis points to 4.33%, while the 30-year yield fell by about 2 basis points to 5.17%. The flattening of the yield curve reflects expectations that the Federal Reserve may need to raise short-term interest rates to gradually cool inflation and curb longer-term borrowing costs. Warsh warned on Friday that inflation had not slowed materially and pledged to bring inflation back to the Fed's 2% target "quickly enough." He called the goal "firm and fixed." Market reaction showed that Warsh had alleviated investors' doubts about his policy stance to a certain extent. These concerns have caused significant volatility in bond markets over the past few months. Warsh issued a hawkish signal when he held his first press conference in June, emphasizing the need to lower inflation, which has been at a high level since the global economy emerged from the epidemic in 2021. But after the Fed kept interest rates steady again in July and Warsh declined to signal whether a rate hike was possible this year, long-term Treasury yields rose sharply as traders demanded higher returns to compensate for the risk of high inflation.