Rising bond yields are doing some of the Fed’s work, as are investor fears over the US central bank’s independence under Kevin Warsh.

Bond traders price in Fed rate hikes as April CPI hits 3.8% and the 2-year Treasury yield reaches 4.18%, the highest since February 2025.

US inflation hits a three-year high at 4.2%. Fed rate hike in 2026 at 51.5% YES.