The Federal Reserve has chosen to hold interest rates steady at a target range of 5.25%-5.5% for the second consecutive meeting, despite a growing economy and inflation above the central bank's target. The decision came alongside an upgrade to the committee's assessment of the economy, stating that economic activity expanded at a strong pace in Q3. The Fed sees the economy holding strong despite the rate hikes, indicating a prolonged tightening stance. Market pricing suggests the first rate cut could come in June 2024. Treasury yields have surged, partly due to a hawkish Fed and worries over Treasury issuance to finance the government's debt load.

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