Federal Reserve official Musalem stated that robust economic growth and increased capital competition are currently shaping the U.S. bond market. In an interview with CNBC, Musalem described the current monetary policy as either neutral or accommodative. The 10-year U.S. Treasury yield has reached around 4.65%-4.71%, its highest level since early 2025, while the effective federal funds rate stands at 3.63%. Market participants are adjusting their expectations for the Fed’s next three decision cycles from June to September 2026. Prediction markets suggest decreased odds of a Fed pause, with investors closely watching upcoming economic data and Fed communications.
Source: Read the original article
