the 2year treasury yield carved out another threemonth high on wednesday after federal reserve officials indicated more rate hikes are likely on the way for later this year projections released on wednesday showed that the median estimate of policy makers for the fed funds rate by yearend is 56 exceeding most expectations fed officials lifted their expectations for the socalled 2023 median dot in their forecasts even though they left their main interestrate target unchanged at between 5525 for june see fed skips june interestrate hike but points to two more increases this year in his postmeeting press conference fed chairman jerome powell said the process of getting inflation back to 2 has a long way to go and that policy makers are strongly committed to that objective he also said policy makers havent made any decisions about their july meetingafter the feds policy announcement fed funds futures traders saw a 599 chance of a july rate hike that would take the fed funds rate target to between 52555 according to the cme fedwatch tool see also fed sees resilient economy and low unemployment prolonging high inflationdata released ahead of the feds decision on wednesday showed that us wholesale prices fell 03 in may the third drop in the past four months the report suggested that inflation has room to decline further however tuesdays consumer price index report for may revealedthat the core rate of inflation which strips out food and energy increased 53 over the past 12 months  and core readings are what the fed cares most about what analysts are saying the fed sees better and stronger economic growth and higher inflation said tom garretson senior portfolio strategist at rbc wealth management in minneapolis markets were looking for at most one more rate hike this year so they were definitely caught off guard by the idea that the fed thinks it needs to raise rates twice more in 2023 he said via phone this content was created by marketwatch which is operated by dow jones  co marketwatch is published independently from dow jones newswires and the wall street journal