Equities slumped in September, with all three major U.S. equity indices posting their first quarterly losses for the year. Weakness from the July highs were primarily tied to Wall Street coming to grips with the Federal Reserve’s messaging of higher interest rates for an extend period. While keeping rates unchanged at 5.25%-5.50% at their September FOMC meeting, Fed Chairman Powell said policymakers forecast one more rate hike in 2023 with no rate cuts expected until later in 2024. The Fed’s quarterly updated “dot-plot” rate outlook revealed only a cumulative median forecast of 0.50% in 2024 rate cuts versus their prior July outlook for 1.00% in rate cuts. Treasury prices were notably weaker as the benchmark 10-year Treasury yield advanced nearly 0.90% during the third quarter to briefly touch its highest since 2007, before easing slightly at month end.