The U.S. central bank held interest rates steady, as was widely expected, and said that its benchmark overnight interest rate may still be lifted one more time this year to a peak 5.50%-5.75% range.
He added that "we want to see convincing evidence really, that we have reached the appropriate level" of interest rates to return inflation to the Fed's 2% target.
Benchmark 10-year note yields hit 4.490%, the highest since November 2007.
Interest rate sensitive two-year yields reached 5.202%, the highest since July 2006.
The U.S. Treasury Department will sell $15 billion in 10-year Treasury Inflation-Protected Securities (TIPS) on Thursday.
Persons:
Murad Sezer, Will Compernolle, Compernolle, Jerome Powell, Karen Brettell, Alexander Smith
Organizations:
REUTERS, Treasury, Federal Reserve, United Auto Workers, UAW, U.S . Treasury Department, Securities, Thomson
Locations:
U.S, New York