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Why are interest rates rising when the Fed has been cutting them?

  • The yield on the 10-year Treasury rose above 4.80%, reaching its highest level since 2023, despite the Federal Reserve cutting interest rates three times since September.
  • The Federal Reserve has lowered its main interest rate by a full percentage point since September to help the economy after raising rates to combat inflation.
  • The bond market is concerned about higher inflation and a strong U.S. Economy that may not need further interest rate cuts, leading to rising yields.
  • Market strategist Gary Schlossberg stated that several months of slowing inflation are needed for the Federal Reserve and the market to consider another rate cut.
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