Treasury Yields Climb on Fed Remarks

2025-12-12 14:49 By Joana Ferreira 1 min. read

The yield on the US 10Y Treasury rose toward 4.2%, its highest since early September, as some Fed officials voiced concerns about further rate cuts.

Chicago Fed President Goolsbee said policymakers “should have waited” for more data before cutting again, even though he voted in favor of the cuts at the Fed’s September and October meetings.

He added he is “uncomfortable front-loading too many rate cuts and assuming recent progress on inflation will be transitory.” Also, Kansas City Fed President Schmid, who dissented, said inflation is still “too hot” and policy should remain somewhat restrictive.

On the other hand, Philadelphia Fed President Paulson struck a softer tone, noting she is slightly more worried about labor-market weakness than inflation.

She will become a voting member next year, while Goolsbee and Schmid rotate off.

The remarks followed the Fed’s third straight 25bps cut and its projection for just one more in 2026.



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