According to CoinMeta, Federal Reserve Chairman Kevin Warsh decided on August 3 to maintain interest rates unchanged, resulting in a cumulative shrinkage of $115 billion in the market value of U.S. Treasurys, bills, and notes. Eric Hikman, the founder of Lantern Capital, estimated that the losses in the bond market this time were higher than the $65 billion that could have been incurred from a 25-basis-point interest rate hike. Last Friday, the yield on 30-year U.S. Treasurys rose to 5.229%, and the yield on 10-year Treasurys rose to 4.688%. St. Louis Federal Reserve Chairman Muhammed El-Erian stated that the responsibility for monetary policy lies with FOMC, implying concerns about relying on market adjustments to achieve policy effects. The scale of losses in the bond market this time far exceeded expectations of a regular interest rate hike, reflecting investors' extreme sensitivity to the current monetary policy path. The rapid rise in yields on long-term U.S. Treasurys clearly indicates that the market is re-evaluating the premium for maturity and liquidity risks. The statements by Federal Reserve officials have further increased policy uncertainty, and such market volatility will force the Federal Reserve to be more cautious in balancing inflation and financial stability in subsequent decisions.