Finance

The Federal Reserve executed its first interest rate increase in three years to combat sticky inflation, ending a period of steady rates. Central bank officials also indicated the possibility of another rate increase later this year alongside fewer cuts next year, which continues to put pressure on heavily indebted borrowers.

Treasury yields resumed their upward trajectory as fixed-income markets adjusted to tighter monetary conditions and persistent energy costs. The benchmark 10-year Treasury yield crossed the critical 5% threshold once again, while the policy-sensitive 2-year Treasury yield climbed to 4.741%, marking its highest closing level since July 2024.

Crude oil benchmarks remained elevated above the $100 per barrel mark due to lingering supply anxieties fueled by geopolitical conflicts in the Middle East. Although prices experienced a mild retreat at the end of the week as restoration work began on a vital Saudi Arabian pipeline, West Texas Intermediate crude still hovered near $103 per barrel.