Analysts warn: The Federal Reserve is over 92% likely to raise interest rates by 25 basis points on Wednesday, but a dovish stance from Chair Warsh could trigger a sell-off in long-term US Treasuries.
Wallstreetcn.com cited analysts' views that the market widely expects the Federal Reserve to raise interest rates by 25 basis points on Wednesday, bringing the benchmark rate to the 3.75%-4.00% range, with a probability exceeding 92%. However, Robin Brooks, Senior Fellow at the Brookings Institution, and Robert Sockin, Chief U.S. Economist at PGIM, both warned that if Federal Reserve Chairman Kevin Warsh's remarks at the press conference are more dovish than market expectations, it could lead to a sell-off in long-term U.S. Treasury bonds. The current 10-year U.S. Treasury yield climbed above 5% on Tuesday, reaching a 19-year high. Analysts believe that Warsh's rhetoric risk far outweighs the rate decision itself, and his statements will be key in determining market direction.
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Source:华尔街见闻 · Source Link
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