US 10-Year Yield Pressured by Fed Worries

The yield on the 10-year US Treasury note hovered around 4.27% on Wednesday, coming under pressure from renewed concerns about the Federal Reserve’s independence and the potential erosion of confidence in US assets. Earlier this week, President Donald Trump said he would remove Fed Governor Lisa Cook over allegations of mortgage fraud, though Cook’s lawyer stated she will file a lawsuit to block the dismissal. Analysts noted that Cook’s potential ouster could raise the likelihood of earlier interest rate cuts, with Trump exerting greater influence over the central bank. Markets are now pricing in an 87% probability that the Fed will lower rates by 25 basis points in September. Investors also await Friday’s release of the PCE price index, the Fed’s preferred inflation gauge, for further direction.