U.S. Treasury yields reached more than a two-month high after the U.S. Federal Reserve said it would begin reducing its $4.5 billion balance sheet starting in October. Current Fed policy requires the central bank to reinvest the proceeds from maturing bonds. The central bank also downplayed the impact of Hurricanes Harvey and Irma on the economy, saying that they "are unlikely to materially alter the course of the national economy over the medium term," other than temporarily lifting inflation because of higher prices for gas and other goods for which the supply chain was disrupted.