U.S. Treasury yields jumped on Wednesday after the Federal Reserve announced its latest interest rate cut, but suggested even fewer rate cuts could be on the horizon.

The yield on the 10-year Treasury Department rose around 9 basis points to 4.474%. The 2 years treasury The yield rose more than 8 basis points to 4.327%.

Yields and prices have an inverse relationship. One basis point is equal to 0.01%.

The Fed announced another interest rate cut of a quarter of a percentage point on Wednesday. The move, which was widely expected by market participants before Wednesday, marked the Fed’s third straight rate cut.

However, the central bank also predicted fewer interest rate cuts next year, forecasting two cuts compared to four previously. The Fed also slightly increased its inflation forecast.

“With today’s action, we have reduced our key interest rate by a full percentage point from its peak, and our monetary policy stance is now significantly less restrictive,” Powell said during the press conference following the announcement on Wednesday. “We can therefore be more cautious when considering further adjustments to our key interest rate.”

In fact, the likelihood of another rate cut at the Fed’s next policy meeting in January has fallen below 10%, according to Fed Fund futures trading tracked by the CME FedWatch tool.

“The Fed has entered a new phase of monetary policy, the pause phase,” said Jack McIntyre, portfolio manager at Brandywine Global. “The longer it lasts, the more likely it is that markets will have to value a rate hike and a rate cut equally. Political uncertainty will make financial markets more volatile in 2025.”

The Fed’s decision came after the European Central Bank last week cut interest rates by 25 basis points for the fourth time this year. The Bank of England will announce its own interest rate decision on Thursday.