The utilities sector, tracked by the XLU ETF, declined as investors braced for a more aggressive Federal Reserve. Commentary from Fed Chair Kevin Warsh's speech at the Jackson Hole symposium has increased expectations for a near-term interest rate hike to combat inflation. [6, 7, 20] This outlook pushed Treasury yields higher, which negatively impacts utilities by increasing their borrowing costs for capital-intensive projects and making their dividend yields less attractive to investors seeking income. [16]