---
title: "BofA: If the Fed Fails to Clarify Its Inflation-Fighting Plan, US Treasuries Will Resume Their Decline"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294726167.md"
description: "Mark Cabana, Head of US Rates Strategy at Bank of America, pointed out that if the Federal Reserve fails to clearly articulate a specific path to achieving its 2% inflation target, the decline in US Treasuries will reemerge. The previous sell-off in long-term bonds was viewed as an \"inflation credibility shock,\" as the Fed Chair's failure to effectively explain measures to curb rising prices dampened market confidence"
datetime: "2026-08-03T18:29:38.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/294726167.md)
  - [en](https://longbridge.com/en/news/294726167.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294726167.md)
---

# BofA: If the Fed Fails to Clarify Its Inflation-Fighting Plan, US Treasuries Will Resume Their Decline

Mark Cabana, Head of US Rates Strategy at Bank of America Global Research, believes that if the Federal Reserve cannot better communicate to the public how it intends to achieve its 2% inflation target, the decline in US Treasuries will reemerge.

The sell-off in long-term bonds last Wednesday, which pushed yields to near 20-year highs, was a "textbook inflation credibility shock." On that day, Fed Chair Kevin Warsh failed to explain to investors at a press conference how the central bank would curb rising prices.

"It is good that you have a firm commitment to achieving 2% inflation, but unless you tell us how you plan to do it, we will not believe you," Cabana said in an interview with Bloomberg Television. "And you cannot fool the bond market; it will see through you."

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