The bond market is testing President Donald Trump's ability to wage war and manage economic policy.
U.S. Treasury yields have surged above 4.5% on the 10-year note as investors focus on the long-term consequences of the Iran conflict.
Federal Reserve officials are discussing rate hikes to combat inflation, contrary to Trump's calls for cuts.
Republicans in Congress worry about spending ahead of midterm elections.
Rising yields increase borrowing costs for mortgages, credit cards, and business loans, potentially impacting the housing market.
Analysts say the administration must address market concerns.
Trump’s comments on peace talks with Iran have temporarily eased yields, but they remain elevated.
A sustained rise could cool housing demand and tip the economy into recession, especially before November elections.
Washington's options are limited; aggressive intervention could undermine inflation credibility.
