The Federal Reserve has maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting. The median preference for the fed funds rate at the close of 2023 remains at 5.6%. For 2024, the central bank's projection for interest rate cuts points toward only a half-percentage point reduction, a hawkish shift from the earlier expectation of a full percentage point decrease. Growth forecasts have been significantly revised upward, standing at a robust 2.1% for 2023. The yield on the policy-sensitive two-year Treasury note, which is tracked by the U.S. Treasury Note ETF (NYSE:UTWO) closed at 5.16% on Wednesday, the highest since July 2007.