Traders work on the floor of the New York Stock Exchange (NYSE) on January 14, 2026 in New York.
Timothy A. Clary | AFP | Getty Images
U.S. Treasury yields rose on Wednesday as investors eagerly awaited the Federal Reserve’s interest rate decision.
The 10-year Treasury yield rose more than 3 basis points to 4.257%, and the 2-year Treasury yield rose more than 1 basis point to 3.585%. The yield on the 30-year U.S. Treasury rose more than 3 basis points to 4.868%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
While the Fed’s interest rate decisions will be the main focus Wednesday, investors are also keeping an eye on headlines about central bank leader Jerome Powell and when President Donald Trump will announce the next Fed chair.
The Fed’s interest rate decision is scheduled to take place at 2 p.m. ET, and investors widely expect the central bank to keep its benchmark rate unchanged in its target range of 3.5% to 3.75%. However, markets will be looking for further insight into future monetary policy from Chairman Powell’s press conference following the announcement.
Traders are currently pricing in a cut of two-quarters of a percentage point by the end of 2026, according to the CME FedWatch tool.
President Trump told CNBC last week that he may have found a successor to Powell, but it is unclear when he will announce his nomination.
“If there’s one time when it’s most likely, it’s during the January FOMC meeting, especially if President Trump is trying to shift attention away from the Fed, which did not cut rates,” Wolf Research chief economist Stephanie Ross said in a note. “More broadly, a decision could be made as early as this week or in the coming weeks.”
Investors have been monitoring its performance. USD After the currency fell more than 1% on Tuesday, marking its worst day since April last year. The annual decline rate is currently over 10%.
Tuesday’s move came after President Donald Trump said the currency’s decline was overdone, instead viewing the currency as “doing well.”
Treasury Secretary Scott Bessent told CNBC on Wednesday that he believes the U.S. has a “strong dollar policy.”
“If we have sound policies, the money will flow in,” he said. “As we are reducing our trade deficit, that should automatically lead to further dollar strength over time.”
—CNBC’s Jeff Cox contributed to this report.
