Citadel Securities’ bond chief has raised concerns about the Federal Reserve’s interest-rate stance, arguing that officials need to respond more proactively to pressures at the long end of the yield curve. The 10-year Treasury yield is hovering between 4.78% and 4.80%, its highest level since November 2023, tightening conditions across borrowing markets. With the Fed’s policy rate at 4.25% to 4.50%, the gap suggests a relatively high term premium, or extra return investors demand for holding longer-term U.S. debt. Prediction markets have slightly reduced the odds of the Fed maintaining a pause through its next three meetings, while expectations for alternative actions have gained ground. Investors are weighing the prospect of rate hikes against inflation, unemployment and economic-growth data. Attention will focus on the September 16 Federal Reserve meeting for signs of a policy shift and its potential effect on market pricing.