The yield on the US 10-year Treasury note rose for a third consecutive session on Wednesday, reaching 4.39%, its highest level in more than a month, as investors awaited the Federal Reserve’s monetary policy decision later in the day. Oil prices also continued to advance amid a lack of progress toward a near-term agreement between the US and Iran to end the conflict and reopen the Strait.
While the Fed is widely expected to leave the federal funds rate unchanged, markets are focused on updated forward guidance, the broader economic outlook, and how the ongoing conflict might influence the policy trajectory. Investors are also looking for clues regarding Chair Powell’s plans once his term expires on May 15.
In parallel, the Justice Department announced it would halt its criminal investigation into Powell, removing a key obstacle to the Senate’s confirmation of his nominated successor, Kevin Warsh.