FX.co ★ US 10-Year Yield Stabilizes After Powell Remarks

The yield on the US 10-year Treasury bond stabilized at approximately 4.11% on Wednesday, following a decline of about 5 basis points in the previous session. This comes as Jerome Powell, the Chairman of the Federal Reserve, expressed caution regarding future policy easing. Powell highlighted that the forecast for interest rate reductions remains uncertain. The Federal Reserve is tasked with the dual challenge of controlling inflation while also supporting a labor market that is showing signs of softening. He further mentioned that the inflationary impacts of tariffs have thus far been lower than anticipated, suggesting some room for less stringent monetary policy. Simultaneously, newly appointed Federal Reserve Governor Stephen Miran, who had pushed for a bolder 50 basis point rate cut at last week's meeting, cautioned that policymakers might be downplaying the current policy's tightness, thereby jeopardizing employment without more decisive measures. Investors are now looking towards the upcoming Personal Consumption Expenditures (PCE) price index report, the Federal Reserve’s preferred measure of inflation, for further insights.