Treasuries surged after Fed officials hinted at a potential interest-rate cut as early as July, reversing earlier losses driven by Middle East conflict fears. Michelle Bowman's support for a cut, contingent on subdued inflation,

Fed funds futures continue to lean into the outlook that rate cuts remain off the table for the next FOMC meeting on July 30.

The Fed chair tells lawmakers that the central bank can afford to be patient amid uncertainty about how President Trump’s policies will impact the economy, even as divisions between officials emerge.