Bank of America cautioned that Federal Reserve Chair Kevin Warsh is facing an emerging-market-style "credibility shock" following the FOMC's 9-3 split decision to hold the fed funds upper bound at 3.75%. This decision, which saw three dissents, triggered a bear steepening of the yield curve, dollar weakness, and rising breakevens. The 10-year Treasury yield surged to a 12-month high of 4.75%, and the 10-year-2-year spread nearly doubled to 0.47 points. Additionally, Warsh is reportedly considering reducing the number of scheduled FOMC meetings from eight per year, a move that could amplify market volatility between policy decisions.