Treasury yields fall to one-week low after Fed hikes rates above 5%, signals possible pause

Treasury yields finished mostly lower on Wednesday after Federal Reserve policy makers pushed the main policy rate target above 5%, and investors saw Chairman Jerome Powell’s post-meeting remarks as signaling a willingness to pause the central bank’s tightening cycle.

What happened

What drove markets

As widely expected, policy makers delivered another 25-basis-point rate hike, lifting their main policy rate target to between 5% and 5.25% — a level not seen since 2007. In their post-meeting statement, they said…