"Warsh is leaving open the possibility of changing the Fed's inflation measurement target before returning to 2% inflation, driving the curve steeper in the process, absent any hawkish intervention from the Fed. "Given Warsh's comments suggesting the balance sheet could be more in play alongside a reduced commitment to the 2% inflation target, the risk points to further bearish steepening." The Fed cares who wins the game, the Fed has goals and objectives and the Fed is a player on the field. There is a half-a-generation of 'Fed watchers' trained to map the Fed officials' comments into actual basis points along the yield curve. Ian Lyngen, head of US rates strategy at BMO Capital Markets:"Warsh is content to keep policy rates steady because the market is doing the heavy-lifting for the Fed."