“The U.S. economy keeps powering through inflation, tariffs and higher borrowing costs, defying a run-up in Treasury yields and a Fed rate increase. That has the bond market spooked,” the Wall Street Journal reports.

“The usual economic brakes aren’t slowing growth, hiring or an AI investment boom that looks to be unstoppable. To some, AI’s potential returns seem so bright that even steep interest rates won’t slow down tech companies’ investments.”

“The decision we made today was a sober decision, serious decision, responsible decision, one that we have been preparing for and thinking about in my hundred and ten or twenty days here.”

— Federal Reserve Chairman Kevin Warsh, quoted by Bloomberg, on defying President Trump and voting to hike interest rates.

“The Federal Reserve raised interest rates Wednesday for the first time in three years, a sharp reversal that began taking back cuts it made last year and implicitly undercut the White House’s insistence that inflation isn’t a concern,” the Wall Street Journal reports.

“The increase, approved unanimously, will raise the benchmark federal-funds rate range by a quarter point to between 3.75% and 4%.”

CNBC: “Updated projections the committee released Wednesday showed that a strong majority of officials think another hike is possible later this year.”

Bloomberg: “With their decision to raise rates, policymakers also defied Trump, who recently threatened to escalate his trade wars if the Fed doesn’t lower interest rates.”

“The benchmark 10-year Treasury yield climbed to its highest level since 2007 on Tuesday as a sell-off in U.S. government debt deepened ahead of the Federal Reserve’s interest-rate decision, which could ripple through the economy,” CNBC reports.

Bloomberg: U.S. borrowing costs soar to highest since 2007.

CNBC: “Hotter-than-expected inflation data has turned next week’s Federal Reserve meeting into a defining test for Chairman Kevin Warsh. His choice now is whether to raise interest rates, or look like he isn’t in control of the central bank he leads.”

“A global bond sell-off pushed 10-year Treasury yields close to the significant 5% mark, approaching their highest level in almost two decades as the Iran War and U.S. trade policies combined to stoke inflationary fears,” Semafor reports.

“The increase in Treasury yields triggered a sell-off of Asian and Australian bonds, appearing to confirm that U.S. Treasury Secretary Scott Bessent’s attempt to steady the government debt market had backfired.”

Bloomberg: U.S. yields surge, calling Bessent’s bluff.

“A monthslong selloff in government bonds is skidding into dangerous ground, pushing borrowing costs toward levels that some fear will finally damage the stock market and the economy,” the Wall Street Journal reports.

“Yields on U.S. Treasurys, which rise when bond prices fall, surged anew on Thursday, lifted by a new jump in oil prices, a firm wholesale inflation report and President Trump’s promise to send $5,000 checks to Americans if Republicans keep control of Congress—a pledge that would add more than $1 trillion to the federal deficit.”

“The Treasury Department failed to cow the bond market Wednesday with its amped-up buyback announcement, as rates still rose,” Axios reports.

“The reaction suggests that Treasury Secretary Scott Bessent’s unusual showdown with the markets could itself add to upward pressure on interest rates — precisely the opposite of what most think he’s trying to achieve.”

“In a Virginia law school classroom, students are grappling with an event once considered unimaginable: a U.S. government debt default,” Axios reports.

“This semester’s class is indicative of a nervousness that has become more widespread about America’s standing in the global financial system.”