{"id":4137,"date":"2025-04-17T12:04:18","date_gmt":"2025-04-17T12:04:18","guid":{"rendered":"https:\/\/ipp-news.com\/?p=4137"},"modified":"2025-04-17T12:04:18","modified_gmt":"2025-04-17T12:04:18","slug":"jerome-powells-hawkish-stance-leads-to-us-treasuries-falling","status":"publish","type":"post","link":"https:\/\/ipp-news.com\/?p=4137","title":{"rendered":"Jerome Powell’s hawkish stance leads to US treasuries falling"},"content":{"rendered":"
US Treasuries fell Thursday, snapping a three-day rally, as traders reduced expectations of interest-rate cuts following Federal Reserve Chair Jerome Powell\u2019s hawkish remarks on inflation.<\/p>\n

The yield on the benchmark 10-year note climbed to 4.30%, erasing much of Wednesday\u2019s gains. Yields across the curve rose, with the five-year yield briefly up six basis points to 3.96%, while the two-year touched 3.82%.<\/p>\n

Powell reiterated the central bank\u2019s focus on combating inflation, warning that tariffs could contribute to a longer-lasting rise in prices. \u201cPowell delivered the clearest message since \u2018Liberation Day\u2019 yesterday, which was unquestionably hawkish,\u201d ING strategist Francesco Pesole said.<\/p>\n

Although Treasuries had initially gained after Powell\u2019s comments, the tone of his message \u2014 and a rebound in global risk sentiment from US-Japan trade developments \u2014 shifted the focus back to inflation risks.<\/p>\n

In a Truth Social post Thursday, President Donald Trump again criticised Powell, saying his \u201ctermination can\u2019t come quickly enough\u201d and that the Fed should have already cut rates. The Fed operates independently of the White House.<\/p>\n

https:\/\/truthsocial.com\/@realDonaldTrump\/114352766082542122<\/p>\n

Money markets are now pricing in around 88 basis points of rate cuts in 2025 \u2014 the equivalent of three quarter-point cuts and a 50% chance of a fourth \u2014 slightly lower than earlier in the week.<\/p>\n

RBC BlueBay Asset Management CIO Mark Dowding said the Fed may feel constrained in taking any near-term action. \u201cThe combination of rising prices and stalling growth will probably mean that the Fed feels it can do nothing in terms of monetary policy,\u201d Dowding said, noting Powell\u2019s attention to his legacy.<\/p>\n

Dowding added that US inflation could climb to 4% due to tariffs, a trend potentially worsened by a weakening US dollar.<\/p>\n

Despite this week\u2019s selloff, some analysts see signs that Treasuries are regaining their traditional role as safe-haven assets. \u201cIt\u2019s at least reassuring that Treasuries traded as they \u2018should\u2019,\u201d said Michael Brown of Pepperstone.<\/p>\n

He cautioned, however, that investor reluctance to hold US assets could still lead to further declines. \u201cYesterday\u2019s move will at least allay some concerns over the dislocations seen last week,\u201d he said.<\/p>\n

Markets now turn to US jobless claims data for the week ending 12 April, expected to show labour market resilience and further guide bond direction.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

US Treasuries fell Thursday, snapping a three-day rally, as traders reduced expectations of interest-rate cuts following Federal Reserve Chair Jerome Powell\u2019s hawkish remarks on inflation. The yield on the benchmark 10-year note climbed to 4.30%, erasing much of Wednesday\u2019s gains. Yields across the curve rose, with the five-year yield briefly up six basis points to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-4137","post","type-post","status-publish","format-standard","hentry","category-english-news"],"_links":{"self":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4137","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4137"}],"version-history":[{"count":0,"href":"https:\/\/ipp-news.com\/index.php?rest_route=\/wp\/v2\/posts\/4137\/revisions"}],"wp:attachment":[{"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ipp-news.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}