Treasury bonds fell as Powell dashed market hopes for a sharp interest rate cut

The Federal Reserve's first interest rate cut in nine months triggered a rally in US Treasuries amid expectations that the central bank will launch a series of aggressive rate cuts to support the economy. However, Fed Chairperson Jerome Powell said Wednesday's rate cut was a risk management decision and that there was no need to adjust interest rates quickly. The cautious remarks dashed market hopes for a sharp rate cut, and US Treasuries fell and US Treasury yields rose. Gennadiy Goldberg, head of US interest rate strategy at TD Securities, said Powell's reluctance to be overly dovish had affected interest rate movements, especially when Powell mentioned the rate cut as an "insurance" rate cut.