economy
2-year Treasury yield rockets higher as many Fed officials signal possible hike this year
U.S. Treasury yields rose on Wednesday after the Fed held interest rates steady during Kevin Warsh's first policy meeting as chairman.
TL;DR
- Treasury yields rose on Wednesday after the Federal Reserve signaled a potential rate hike.
- The 2-year Treasury note yield climbed over 16 basis points to 4.216%.
- The 10-year U.S. Treasury note yield rose over 7 basis points to 4.499%.
- The median estimate for the Fed Funds Rate to end 2026 is now 3.8%, up from 3.4%.
- Kevin Warsh, the new chairman, did not submit a projection for the Fed Funds Rate.
- The FOMC statement reduced language hinting at an easing slant.
- Financial markets are on edge due to shifts in the dot-plot, votes, and language from the Fed meeting.
- The Fed is increasingly concerned about inflation, despite some potential for reprieve.
- Warsh announced five task forces to address central bank communications, balance sheet, and other issues.