10-year Treasury yield rises to highest since 2007 as Fed rate-hike expectations rise
Traders raised odds of a rate hike to 90% as oil prices jumped above $109 a barrel and bond selloffs pushed borrowing costs higher.
- On Wednesday, the Federal Reserve raised its benchmark interest rate to a range of 3.75% to 4%, marking the first increase in three years to combat persistent inflation.
- Persistent inflation climbed 3.4% annually in August, while an energy shock from the war in Iran exacerbated cost pressures, forcing the Fed's intervention.
- Financial markets largely anticipated the move, with the CME FedWatch tool showing a 92% probability of a rate increase; the 10-year Treasury yield hit 5.02%, its highest level in 19 years.
- This decision places the Fed at odds with the White House, as President Donald Trump repeatedly urged officials to lower rates to boost economic growth.
- Analysts debate whether this increase is a one-time measure or the start of a tightening cycle, while higher borrowing costs may persist as the Fed pursues its 2 percent inflation goal.
180 Articles
180 Articles
Fed Rate Hikes, US Treasury Market & Crisis of Empire
This past week the Federal Reserve raised its benchmark short term interest (Federal Funds) rate a minimal quarter point, .25, from 3.75% to 4.00%. Expectations are strong for yet another .25 hike before the end of 2026. Goods and services inflation in the US has recently begun to accelerate and the conventional wisdom in the [...]
Wall Street holds steady ahead of Fed’s decision as oil prices and bond yields ease
Worries are so strong about inflation staying high that analysts see it as a near certainty that Fed officials will announce their first hike to interest rates since 2023 later in the day.
The US Federal Reserve announces its key interest rate decision in the evening. "The Fed is likely to deliver today and raise the key interest rate by 25 basis points," says economist Johannes Mayr in conversation with Dietmar Deffner.
The Fed is heading for the first rate hike since 2023. But the dollar hardly benefits. Enormous US debt and the conflict between Trump and Fed burden trust in the world's leading currency. By Angela Göpfert.
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