Kevin Walsh, the chairman of the Federal Reserve, kept interest rates unchanged, and the market value of US treasury bond bonds fell by $115 billion

On August 3, Kevin Walsh, the chairman of the Federal Reserve, decided to keep the interest rate unchanged, resulting in a cumulative decline of US $115 billion in the market value of US treasury bond bonds, bills and treasury bills. Lantern Capital founder Eric Hickman estimates that the bond market's losses this time are higher than the potential $65 billion loss caused by a 25 basis point interest rate hike. On Friday, the yield of 30-year US treasury bond bonds rose to 5.229% and the yield of 10-year US treasury bonds rose to 4.688%. St. Louis Fed President Musalem stated that the responsibility for monetary policy belongs to the FOMC, implying concerns about relying on market adjustments to achieve policy effects. AI interpretation: The decision of the Federal Reserve to keep the interest rate unchanged directly triggered a sharp sell-off in the bond market. The long-term pricing of the market for the high interest rate environment led to a sharp decline in the market value of treasury bond bonds. The scale of losses in the bond market this time far exceeds the conventional expectation of interest rate hikes, reflecting investors' extreme sensitivity to the current path of monetary policy. The rapid rise in long-term US bond yields clearly indicates that the market is reassessing term premiums and liquidity risks. The statements of Federal Reserve officials further exacerbate policy uncertainty, and this market volatility will force the Fed to be more cautious in balancing inflation and financial stability in subsequent decisions.