Traders work on the floor of the New York Stock Exchange (NYSE) on July 12, 2023 in New York City.
Treasury yields fell on Wednesday after the Federal Reserve hiked interest rates by 25 basis points and Wall Street assessed commentary from Chair Jerome Powell that hinted at holding rates steady.
The 10-year Treasury yield was about 5 basis points lower at 3.863%, while the 2-year Treasury was at 4.841% after falling more than 5 basis points.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
The central bank announced a widely-anticipated 25 basis point increase at the conclusion of its July policy meeting Wednesday, bringing interest rates to their highest level in more than 22 years. Commentary from Powell also indicated that the central bank could hold rates at these levels.
Get Tri-state area news delivered to your inbox.> Sign up for NBC New York's News Headlines newsletter.
"I would say it's certainly possible that we will raise funds again at the September meeting if the data warranted," Powell said. "And I would also say it's possible that we would choose to hold steady and we're going to be making careful assessments, as I said, meeting by meeting."
Many had been hoping in recent weeks that the central bank will end its rate-hiking campaign soon, in light of investor concerns about elevated rates dragging the U.S. into a recession. Recent remarks, however, have hinted that further rate hikes are still possible depending on economic data, especially inflation data.
"The Committee will continue to assess additional information and its implications for monetary policy," the Fed said in a statement, offering a vague hint at what it will do at future meetings as it continues its fight to ease inflation and cool the economy.
Money Report
The policy decision comes after the latest consumer inflation data came in at 3% on an annual basis, which was the lowest level since March 2021 but still ahead of the Fed's 2% target range.
The European Central Bank and the Bank of Japan will meet later in the week.
