Surging Treasury yields are posing a brand new problem for Kevin Warsh and the Fed

The bond market is yelling at the Federal Reserve, but the messages are coming from different directions and pose a dilemma for policymakers as they seek to strike a balance that won't tank the economy. Treasury yields continued their upward march Thursday as investors sought to price in a variety of factors: inflation still hovering well above the Fed's 2% goal, another bump up in energy prices and the impact of a global hyperscaler financial arms race and accompanying debt issuance. In the past, policymakers have been willing to look through inflation spurts from temporary shocks like high energy prices and tariffs.