FX.co ★ US 10-Year Yield Holds Pullback

The yield on the 10-year U.S. Treasury note held firm below 4.4% on Wednesday as investors analyzed the Federal Reserve's interest rate decision amidst ongoing geopolitical tensions and their potential influence on inflation. As anticipated, the Federal Reserve maintained its rates at current levels, and members of the Federal Open Market Committee (FOMC) continued to project that two rate cuts might suffice for the year. However, they reduced the projected extent of future cuts and downgraded growth forecasts in line with the Fed's indication that uncertainty around tariffs and fiscal challenges is hindering economic activity and increasing inflation pressure. Meanwhile, President Trump reiterated strong remarks on Iran, acknowledging their intent to ease tensions, which limited a significant rise in crude oil prices and mitigated further inflation risks. Additionally, recent data shows initial unemployment claims remaining elevated, intensifying concerns about a potential slowdown in the labor market.