The yield on the US 10Y Treasury note rose toward 4.2%, its highest level since early September, as investors assessed a wave of commentary from Federal Reserve officials and reconsidered the policy outlook for 2026. The remarks came on the heels of the Fed’s decision this week to deliver a third straight quarter-point rate cut, bringing the federal funds rate to 3.50%–3.75%, while maintaining projections for just one additional cut in 2026. Kansas City Fed President Jeffrey Schmid, who dissented, said inflation is still “too hot” and that policy should stay somewhat restrictive. Chicago Fed President Austan Goolsbee also voted against the cut, saying he wanted to see more inflation data, though he expects more rate cuts in 2026 than most of his colleagues. Philadelphia Fed President Anna Paulson took a softer stance, saying she is slightly more worried about labor market weakness than rising inflation. She will become a voting member next year, while Goolsbee and Schmid rotate off.