Analysts say the Federal Reserve’s press conference was hawkish, and the two-year yield hit its highest level in over two years.

Analyst Chris Anstey stated that the volatility on Federal Reserve days once again stemmed more from the press conference than from the FOMC statement. As for today, Federal Reserve Chair Walsh’s remarks seemed to only slightly amplify the tone conveyed by the latest dot plot and rate decision. Overall, the press conference was hawkish. Although Walsh did not provide specific forward guidance, when he said that he and his colleagues were withdrawing “a dose of easing,” it signaled to me that, unless the data changes, he remains open to further rate hikes. Some investors must have interpreted it this way as well, which is precisely why the two-year yield hit its highest level in more than two years after he began speaking.