The US 10-year yield rose on Wednesday, a day when the Federal Reserve cuts its target rate. As expected, the central bank reduced the Fed funds rate by 1/4 point to a 4.0%-to-4.25% range. The 10-year yield briefly ticked below 4.0% during yesterday’s session, but by the close rose 4.09%, the highest since Sep. 9.

Fed funds futures are projecting another 1/4-point rate cut at the next policy meeting on Oct. 29. The market’s pricing in a roughly 90% probability that the central will reduce its target rate again next month.

The Federal Reserve kept its 2025 expectations for inflation steady in the revised economic projections published on Wednesday. The central bank’s headline PCE and core PCE forecasts for 2025 remained at 3.0% and 3.1%, respectively, matching June’s estimates.

Federal Reserve Governor Stephen Miran was the lone dissenter from the Fed’s decision to lower its key interest rate by a quarter percentage point on Wednesday. Miran, the Trump appointee that the Senate confirmed to the Fed Board of Governors just a day before the two-day policy meeting kicked off, called for a half-point cut.

Business inflation expectations remained steady in September, according to a survey by the Atlanta Fed. Firms’ year-ahead inflation expectations posted no change at 2.3% vs. the previous month, on average.

US housing starts fell more than expected in August. The decline reflects steep drops in both single-family and multi-family housing starts. The Commerce Department also said newly issued building permits dove last month.