FX.co ★ US 10-Year Yield Steadies as Fed Outlook Mulled

The 10-year US Treasury yield remained steady around 4.07% on Thursday, following an increase of approximately 5 basis points in the previous session, as market participants assessed the Federal Reserve's policy directions. On Wednesday, the Federal Reserve implemented a broadly anticipated quarter-point interest rate cut and indicated plans for two additional reductions in the current year, with only one scheduled for 2026. This stance challenges the expectations of two or three cuts next year. Chairman Jerome Powell adopted a prudent approach, describing the rate cut as a strategic response to weaknesses in the labor market, while emphasizing that there is no immediate need to hasten further easing measures. Interestingly, the recently appointed Governor, Stephen Miran, was the only member to dissent, advocating for a more substantial 50 basis points cut, which resulted in fewer disagreements than initially projected.