U.S. Treasury yields moved higher on Wednesday as investors keenly awaited the Federal Reserve's interest rate decision.

At 5:31 a.m. ET, the 10-year Treasury yield was up 2 basis points to 4.249%, while the 2-year Treasury note yield was little changed at 3.57%. The 30-year Treasury yield rose more than 3 basis points to 4.865%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

While the Fed's interest rate decision will be the main focus on Wednesday, investors are also monitoring headlines relating to central bank leader Jerome Powell and when President Donald Trump will announce who the next Fed chair will be.

The Fed's rate decision will come at 2 p.m. ET, with investors widely expecting the central bank to keep its benchmark interest rate steady at a target range of 3.5% to 3.75%. However, markets will be looking for further insights on future monetary policy during Powell's press conference after the announcement.

Traders are currently pricing in two-quarter percentage point cuts by the end of 2026, according to the CME FedWatch Tool.

Trump told CNBC last week that he may have found a successor to Powell, but it's unclear when he will announce the nomination.

"If there is a single most likely window, it's during the January FOMC — particularly if Trump is looking
to redirect attention away from a Fed that didn't cut," Stephanie Roth, chief economist at Wolfe Research, said in a note. "More broadly, the decision could come as soon as this week, or within the next couple of weeks."

— CNBC's Jeff Cox contributed to this report.