U.S. Yields Slip As Powell Signals Patience, U.S. Dollar Pulls Back From Highs

By Christian Borjon Valencia of FX Street

Editor • May 7, 2025 at 3:21 PM EDT

Powell warns tariffs may hinder progress on Fed’s goals, adding to uncertainty over policy path.

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The US Treasury yields edged lower across the whole curve, down an average of two and a half to three basis points so far after plunging over seven basis points earlier. However, as Fed Chair Powell answered a question regarding the Fed leaning towards one side of the dual mandate, he said that it is too early to predict.

10-year yield falls to 4.27% after Chair Powell downplays urgency for action

The US 10-year Treasury yield falls two and a half basis points to 4.271% at the time of writing, weighing on the Greenback, which has so far retreated from daily highs of 99.63, as depicted by the US Dollar Index (DXY).

The DXY, which tracks the performance of the buck’s value against a basket of currencies, is at 99.51 up 0.12%.

The Fed Chair, Jerome Powell, said that the Fed is in no hurry and can be patient. He noted that current monetary policy is appropriate and that if things develop, “we can move quickly as appropriate.” Powell added, “We won’t make progress on our goals this year if tariffs remain.”

US 10-year yield daily chart

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