CNBC analysis indicates that the continuous rise in U.S. government bond yields, with the 30-year yield reaching its highest level since 2004, presents a policy dilemma for Federal Reserve Chairman Warsh. The market anticipates the Federal Reserve will respond more aggressively to inflation, but officials face a predicament between tightening policy and avoiding a recession. New York Fed President Williams and Philadelphia Fed President Plosser have both stated that further rate hikes may be necessary, but emphasized the need for patience and data dependency.