The Fed might not have anything to do with the rise in long-dated bond yields, but it might be able to stop it.

The path toward the move still looks cluttered.

By Howard Schneider WASHINGTON, Sept 2 (Reuters) - After opening the door to higher interest rates last week, U.S. Federal Reserve Chairman Kevin Warsh has to decide how to follow through with actions the public and investors will see as both consistent with his own words and independent of President Donald Trump's wishes.

Kevin Warsh used Jackson Hole to reassure markets that inflation is his top priority. The new Fed Chair told the symposium Friday that responsibility for “65 months of sustained, elevated inflation sits squarely with the central bank.” Then he declined to explain what he plans to do about it.

The price of gold fell further Monday following its biggest decline in months on Friday, which analysts have attributed to Federal Reserve chair Kevin Warsh’s speech calling for Fed action to cool inflation, as well as renewed tensions with Iran.

Federal Reserve Chairman Kevin Warsh told a meeting of global economic policymakers on Monday that the economic assumptions of the past two decades no longer hold. Secular stagnation, the idea that the world had run short of investment opportunities,

The speech offered reassurance to investors and Fed officials who had questioned whether Warsh would resist political pressure from Trump. The president has repeatedly demanded lower rates and recently called the current federal-funds range of 3.5% to 3.75% excessive.

Kevin M. Warsh, the chairman of the Federal Reserve, must soon decide whether to raise interest rates if inflation does not ease, even if it draws President Trump’s ire.

If the Fed chief opts against raising rates, the market may fear that politics is guiding his thinking. That could lift gold.