10-Year Treasury Yields Inch Up as Trump Visits Fed, Heightening Rate-Cut Pressure

The yield on the 10-year U.S. Treasury ticked up slightly early Thursday, rising 1 basis point to 4.4%, as financial markets kept a close watch on the evolving relationship between President Donald Trump and Federal Reserve Chair Jerome Powell. The modest increase in yields was echoed across the Treasury curve, with other maturities also edging up by around 1 basis point. Investors remain cautious amid political pressure on the central bank and global economic negotiations.

President Trump is scheduled to visit the Federal Reserve on Thursday, marking the first time in nearly two decades that a sitting U.S. president has made an official visit to the central bank. The visit signals Trump’s growing efforts to influence monetary policy, particularly his ongoing criticism of Powell for not lowering interest rates. Trump’s repeated suggestions that Powell should be fired have raised alarm among economists and investors concerned about preserving the Fed’s political independence.

Despite Trump’s criticism, Treasury Secretary Scott Bessent attempted to reassure markets Wednesday by stating there’s “nothing that tells me that [Powell] should step down right now.” His comments helped to slightly stabilize sentiment, although uncertainty over the Fed’s policy direction remains high. The tension comes at a time when the central bank is attempting to balance inflation control with broader economic growth.

Markets are also eyeing trade talks between the U.S. and the European Union. Hopes for a breakthrough were bolstered after the U.S. signed a significant trade agreement with Japan. Trump hinted at further progress during a private dinner, stating that “Europe [is] coming in tomorrow, and the next day,” suggesting back-to-back negotiation meetings are in the pipeline.

In sum, Thursday’s modest rise in bond yields reflects investor uncertainty around both domestic monetary policy and international trade developments. With Trump stepping up pressure on Powell and geopolitical talks intensifying, markets are bracing for potential volatility in the weeks ahead.

Source: CNBC