[Market Volatility Intensifies Ahead of Federal Reserve Meeting: U.S. Treasury Yields Hit Highest Since 2007, AI Stocks Face Sell-Off] BlockBeats News, September 15 — The Federal Reserve is set to begin its two-day policy meeting this Tuesday, with markets anticipating a 25 basis point rate cut on Wednesday and a 75% probability of another rate cut in December. However, with inflation still above the 2% target, Federal Reserve Chair Kevin Walsh faces significant policy pressure. Meanwhile, financial markets are experiencing multiple sharp fluctuations. The yield on the 10-year U.S. Treasury rose to its highest level since 2007 during Tuesday's early trading and broke past the 5% threshold during Monday's session. Continued sell-offs in U.S. Treasuries are further complicating the Fed's efforts to control inflation. AI trading has also seen a notable reversal. Influenced by warnings from several AI industry leaders about the need to slow down model development, AI-related stocks fell sharply on Monday, with popular AI assets like Nvidia facing sell-offs. U.S. President Trump made a rare intervention during the All-In Summit event, calling Nvidia CEO Jensen Huang and stating that market concerns over AI are "a complete hoax," but this failed to prevent U.S. stocks from weakening in late trading. Additionally, international oil prices continue to rise, with Brent crude and WTI futures both surpassing $100 per barrel. Attacks by Yemen's Houthi forces on Saudi Arabia and assaults on ships in the Strait of Hormuz have heightened fears of supply disruptions. The correlation between oil prices and U.S. Treasury yields has reached its strongest level since 2019, while U.S. stock futures saw slight declines following broad weakness in Asian markets. [Original Link]