The yield on the 10-year US Treasury note inched below the 4.3% mark on Wednesday, extending the slight pullback from the yesterday as markets continued to assess the rate outlook for the Federal Reserve. Minutes from the FOMC’s last meeting noted that members mostly agreed that pro-inflationary risks outweighed concerns of an aggressive slowdown to labor conditions, adding that tariffs are likely to be pro-inflationary and have an impact at an unknown lag. The comments were aligned with remarks from Fed Chairman Powell after July’s decision, which the market interpreted as hawkish. Investors now await the Chair’s keynote speech in Jackson Hole for new updates on how the FOMC balances inflation and labor risks, as the July meeting took place before the aggressive downward revisions to non-farm payrolls in the last three months and pessimistic ISM PMI prints, which drove markets to pile on bets of multiple rate cuts this year. Current rate futures reflect two more rate cuts this year.