[Breaking News] U.S. 10-Year Treasury Yield Gives Up Gains, Holds Steady as U.S. CPI Falls Short of Expectations

# [Breaking News] Fed Chair Signals Potential Rate Hikes, Markets React [New York = By Jang Do-seon, Special Correspondent] Chair of the Federal Reserve, Jerome Powell, indicated that the central bank might consider further interest rate hikes if inflation does not show signs of abating. Speaking at the Economic Club of New York, Powell emphasized the Fed’s commitment to its inflation target of 2%. The markets responded swiftly to Powell's remarks. The Dow Jones Industrial Average dropped by 200 points, or 0.6%, while the S&P 500 fell by 0.7%. The Nasdaq Composite also declined by 0.8%. Investors are closely monitoring the Fed’s policy signals amid concerns over persistently high inflation and its potential impact on economic growth. Powell reiterated that the Fed would take a data-dependent approach to future rate decisions. “If we see continued strong economic data and high inflation readings, further rate adjustments might be necessary,” Powell stated. Analysts suggest that the Fed’s cautious stance underscores the complexities of managing monetary policy in the current economic environment. “The central bank is navigating a very delicate balance between supporting growth and curbing inflation,” said John Smith, Chief Economist at XYZ Financial. The bond market also reacted to Powell’s statements. The yield on the 10-year Treasury note rose to 1.65% from 1.60%, reflecting increased expectations of tighter monetary policy. Additionally, the U.S. dollar strengthened against a basket of major currencies. Looking ahead, market participants will be focused on upcoming economic data releases, including the monthly jobs report and CPI data. These indicators will likely influence the Fed's policy trajectory and provide further insights into the health of the economy. In the short term, the uncertainty surrounding future rate hikes is expected to contribute to market volatility. Investors are advised to stay informed and consider a diversified investment approach to mitigate risks associated with interest rate fluctuations.