Market Dynamics
Recent fluctuations in the bond market have pushed the 10-year Treasury yield above 4.80%, its highest since 2023, causing a dip in stock market indexes.
The 's three interest rate cuts since September have not stabilized the market, as investors anticipate higher inflation and a robust economy that might not benefit from further rate cuts.
Economic Outlook
Despite the Fed's efforts to provide economic relief, the rising 10-year Treasury yield reflects growing expectations for economic growth and inflation, influenced by strong economic reports and stubborn inflation.
The Federal Reserve has revised its forecast, indicating potential only two interest rate cuts in 2025, raising doubts among Wall Street traders about the likelihood of any rate cuts in the year.