The Wall Street Journal argues that rising Treasury yields are not a sign that Federal Reserve Chairman Kevin Warsh is failing, but that his plan to reduce the Fed’s influence on bond markets is working. Stronger economic growth, especially from AI investment, is pushing interest rates higher.

For years, the Fed kept borrowing costs low through quantitative easing and low rates, helping the government finance its debt cheaply. Now, as the Fed reduces its balance sheet, the government faces higher borrowing costs. The author believes this could eventually force lawmakers to confront the true cost of government spending and rising national debt.