BlockBeats News, July 30, On Wednesday, the US stock market opened lower, further intensifying the market pressure ahead of the afternoon Fed interest rate decision. The negative sentiment was mainly due to the surge in oil prices. Earlier, Trump, in an interview with Fox News, stated that the US would launch a strong strike against Iran in response to the recent attacks on personnel in the Middle East.

The yield on the 10-year US Treasury bond edged up to 4.62%, approaching a year-to-date high. The more Fed-sensitive 2-year US Treasury yield rose by about 3 basis points to 4.3%, also nearing a yearly peak. Traders are generally hoping that the Fed led by Powell can send a signal indicating that they believe the oil price impact from a potential Iran war is temporary and that they will not rush to raise rates this year.

However, some opinions also suggest that a rate hike would be reasonable and could demonstrate the Fed's determination to curb inflation, thereby soothing the long-end of the yield curve.