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Warsh says bond-yield rise tied to strength, capex

Fed chair Kevin Warsh said the rise in bond yields is driven by economic strength and surging capital expenditures, not a loss of confidence in the central bank’s inflation fight.

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Federal Reserve Chairman Kevin Warsh said on Wednesday that a loss of confidence in the central bank’s resolve to fight inflation is not among the forces driving bond yields higher. He said the increase in borrowing costs instead reflects economic strength and surging capital expenditures that have i…