Takeaways from Warsh’s news conference.

There is an interesting dynamic in the market as investors digest Warsh’s comments. The short-dated, two-year Treasury yield has fallen to 4.71 percent, while the 10-year Treasury yield has risen to 5.04 percent. The move in the 10-year was driven by a rise in the breakeven inflation rate, which is a market measure of investors’ inflation expectations. “That to me is literally the market saying that you talk tough on inflation but you are not delivering on it,” said George Goncalves, head of U.S. macro strategy at MUFG Securities.