U.S. Treasury yields fell Wednesday after Federal Reserve Chair Jerome Powell hinted at a potential rate cut in September.
The yield on the 10-year Treasury was down nearly 5 basis points to 4.092%. The 2-year Treasury yield dropped 4 basis points to 4.315%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
The central bank kept rates unchanged at the conclusion of its policy meeting on Wednesday and pointed to “some further progress” toward bringing inflation down to the central banks 2% goal.
During a press conference following the decision, Powell also said that if data continues to boost the central’s bank’s confidence in slowing inflation, it would act.
“If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” he said.
Questions linger over how many rate cuts could be implemented by the Fed this year. The CME Group’s FedWatch tool shows…
