TAG Industrial Watch: June 20, 2026

During his first committee meeting on interest rates, the newly appointed chairman of the Federal Reserve, Kevin Warsh, announced that rates on bank-to-bank lending would remain unchanged for now. However, Warsh reiterated the Fed’s mandate for price stability (which inexplicably equates to consumer prices rising by the Fed’s long-stated target of 2% a year). While the Fed has opened the door to increasing interest rates this year to keep inflation in check, industrial investors should not get distracted from what matters most. Regardless of the Fed incrementally increasing rates, the bigger issue is the Fed’s “balance sheet.” Since early December, the Fed has inflated the money supply to purchase $291 billion in U.S. Treasuries, a move that Warsh said will continue.

But with one-third of our nation’s $39 trillion debt maturing this year and a record number of foreign central banks replacing their Treasury holdings with gold, the Fed will eventually need to increase its debt purchases if it wants to keep a lid on market interest rates throughout the economy. The only problem is that the more the Fed inflates to buy Treasuries, the more upward pressure on prices, which triggers more holders of low-yielding U.S. debt to sell. With the national debt up $3 trillion over the last year and annual interest payments surpassing $1.2 trillion (representing 23% of government revenues), it’s clear to see how easily the Fed can lose control of market interest rates (FRED). As the economy continues on a collision course with stagflation, industrial landlords who are considering a sale should consider taking action today while rates are stable.

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