The FOMC held rates at 3.50–3.75 % but ripped up its guidance and delivered a hawkish dot plot. MUFG reports that the long‑run dot remains near 3 %, prompting a front‑end Treasury sell‑off and flattening the yield curve. With the Fed telling markets to “learn from the data”, investors are pricing out 2026 cuts and bracing for another hike. A flat curve tightens credit conditions and may test equity valuations.

#FedHawkishDotPlotFlattensYieldCurve #Bonds #Macro $UST $2Y $10Y @FederalReserve @Mufg