Bond Yields Surge, Oil Near $100 as Fed Weighs Rate Decision
US 10- and 30-year Treasury yields are climbing as oil approaches $100 and markets price a 69.8% chance of a quarter-point Fed rate hike next week.
US 10- and 30-year Treasury yields are climbing as oil approaches $100 and markets price a 69.8% chance of a quarter-point Fed rate hike next week.
Jim Cramer says current conditions are not conducive to Fed rate cuts, while flagging Kevin Warsh as a serious contender shaping the central bank’s direction.
VP JD Vance says the Trump administration believes inflation data supports a Federal Reserve rate cut, as surging Treasury yields fuel housing affordability worries before the Fed’s Sept. 15-16 meeting.
August payrolls added 162,000 jobs, nearly triple estimates, as markets price a 60% chance of a September rate move — complicating pressure on the Fed to cut.
The S&P 500 sits about 1% from its record high as investors await the September 11 CPI report ahead of the Fed’s September 15-16 meeting, with hike odds near 50/50.
The 10-year Treasury yield hit 4.80% and the 5-year touched 4.55% as inflation fears, deficits and Fed rate-hike signals push borrowing costs higher globally.
Markets now price a 25-basis-point September Fed rate hike as the likely outcome even as President Trump says rates are already too high, with futures diverging.
Treasury Secretary Scott Bessent’s reported plan to tap $950 billion from the General Account for bond purchases has drawn both support and criticism from market watchers.
Fed Chair Kevin Warsh’s inflation-fighting stance at Jackson Hole rattled Wall Street, with the S&P 500, Nasdaq and Dow all closing lower as September rate hike bets grow.
Central bank chiefs meet at Jackson Hole as bond markets stay jittery, the Iran war hits six months, and Nvidia earnings loom as an AI spending gauge.