A Potential Pause in Interest Rate Hikes? Here's What Federal Reserve Officials Are Saying

The US 10-year Treasury yields experienced a dip of over 18 basis points, falling to 4.62% on Tuesday.

Federal Reserve officials' indications of a potential pause in rate hikes have predominantly driven this shift. Vice Chair Philip Jefferson and Dallas Fed President Lorie Logan are among those proposing a cessation in rate hikes, which has been echoed by the FedWatch tool through a drop in rate hike probabilities from 27% to 14%.

The Federal Reserve's prudent strategy regarding future rate hikes aims to mitigate potential risks associated with sudden changes in monetary policy while also addressing the issue of high inflation.