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Trump is facing a new inflation warning from the bond market, adding to his midterm challenges
The Associated Press ^ | June 1, 2026 | JOSH BOAK

Posted on 06/01/2026 6:41:31 AM PDT by Timber Rattler

The world is getting more uptight about lending money to President Donald Trump’s government — causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.

The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government. Interest rates on a 10-year U.S. Treasury note are topping 4.44%, up from 3.95% before the war started at the end of February. Average mortgage rates have climbed to their highest levels in nine months, while auto sales are slumping.

The challenge is global in scale, as interest rates have risen for multiple countries as the world has been adjusting to the prospect of higher inflation, mounting questions about the sustainability of government debt and a dramatic surge in investment in artificial intelligence.

Trump has tried to assure Americans that he has a plan to trim the roughly $1.8 trillion annual budget deficit. In the past, he has pointed to revenue from tariffs, payments from foreigners for his “Gold Card” visa, spending cuts made by the Department of Government Efficiency, and faster economic growth. Last week, he said the fraud task force led by Vice President JD Vance would be the key to unlocking massive savings.

“If he does really great, we’ll have a balanced budget without having to do anything,” Trump said.

(Excerpt) Read more at apnews.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: apepee; asspressposter; bobwillstroll; bunnyalert; bunnydroppings; carrotbreath; dpettytroll; economy; fakenews; gopeebriefs; gopeebriefsroom; inflation; lindatattler; lordhawhawmedia; mediawingofthednc; midterm; orangemanbad; partisanmediashill; partisanmediashills; pettywillsrattler; tds; tdsbelow; tdsposter; tdsrepublic; tdstrolls; tdstrollshasthesads; terminaltds; timberbunny; timbertds; timbertroll; trollrepublic; trump; trumpertantrum; trumphatred; undermining; zeepertroll; zotthetrolls; zottimberbunny

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The numbers don't lie.
1 posted on 06/01/2026 6:41:31 AM PDT by Timber Rattler
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To: Timber Rattler

So, what’s going to happen? The markets continue melting up.


2 posted on 06/01/2026 6:42:37 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: Timber Rattler

The numbers suggest that the Fed should raise interest rates.
Yet Trump wants them to lower rates.

I sense yet another kerfuffle on the horizon.


3 posted on 06/01/2026 6:51:21 AM PDT by Leaning Right
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To: Timber Rattler

Oh yeah - they’ll invest in communist markets because they lie and cheat… but Trumps the real one in trouble.


4 posted on 06/01/2026 6:51:35 AM PDT by Skywise
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To: Timber Rattler

thanks for the warning AP! i know i always look to the bond market to decide who to vote for ... btw, is it a good thing when bonds go up or down?


5 posted on 06/01/2026 6:51:53 AM PDT by catnipman ((A Vote For The Lesser Of Two Evils Still Counts As A Vote For Evil))
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To: Timber Rattler

Trump’s polices are quickly becoming failures..


6 posted on 06/01/2026 6:57:22 AM PDT by dpetty121263
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To: MeneMeneTekelUpharsin
The most likely scenario is that we end up with the umpteenth round of quantitative easing (QE).

The U.S. Treasury Department will issue bonds at 1% rates, and the Federal Reserve will buy them up.

Of course, this will result in an endless cycle of inflation -- as it has for years in the past.

7 posted on 06/01/2026 7:02:31 AM PDT by Alberta's Child (If I leave here, it’s because I’m tired of arguing with geriatric parrots wearing MAGA hats.)
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To: Timber Rattler

Timber Bunny’s is backz.😂🐰
Did your programmer update your software?


8 posted on 06/01/2026 7:22:42 AM PDT by MotorCityBuck (Keep the Change You Filthy Animal !)
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To: dpetty121263

Israel is doing great, that’s the Republican’s number one priority.


9 posted on 06/01/2026 7:26:12 AM PDT by qam1 (There's been a huge party. All plates and the bottles are empty, all that's left is the bill to pay)
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To: Leaning Right

“Yet Trump wants them to lower rates.”

That is insane.


10 posted on 06/01/2026 7:29:02 AM PDT by Vision (“Our Democracy” means "Our Slush Fund." The Left is hate.)
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To: Vision

ap ESAD


11 posted on 06/01/2026 7:35:25 AM PDT by skinny old man (Still lurking and posting after all these years(27 yrs ?)(more ?)(seems like more...))
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To: MotorCityBuck

Funny how certain people here have nothing to post other than anti-Trump news articles.


12 posted on 06/01/2026 7:44:19 AM PDT by BobL (Trusting one's doctor is the #1 health mistake one can make.)
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To: BobL
So what part of the article is inaccurate, Bob?

Are the numbers lying?

13 posted on 06/01/2026 7:45:57 AM PDT by Timber Rattler ("To be prepared for war is one of the most effectual means of preserving peace." --George Washington)
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To: dpetty121263
Trump’s polices are quickly becoming failures..

$1,538,748,300,613.80 in new federal debt so far this fiscal year.

$2,958,043,392,223.10 in new federal debt since Trump started his second term.

$10,762,635,073,425.40 in new federal debt during Trump's time in the White House.

So far...

14 posted on 06/01/2026 7:50:16 AM PDT by Gunslingr3
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To: Gunslingr3

Well that is on the books debt, off the books something like 150 trillion... Till they run out of ink they will keep spending but when the music stops playing the game keeps on going.


15 posted on 06/01/2026 7:54:48 AM PDT by dpetty121263
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To: Vision

DJT has indicated a rate cut isn’t in the immediate future. He is giving Warsh a pass that he wouldn’t give the Fed a few months ago. Spending and War Spending are problems. Congress not getting things passed is always a problem. He/they have about 2 months to start making a difference...Yes, the bond market is an issue. There are lots of issues at home. Few, outside of two big beautiful bills with overdosed spending, have been achieved.


16 posted on 06/01/2026 7:55:13 AM PDT by Oystir ( )
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To: Timber Rattler

The Stage is being set to bring down Trump. Iran needs to drag out talks for months—keeping oil prices high. Democrats need to riot and target ICE police and raids. Democrats need to keep inflation high—for their demands that US Life isn’t “Affordable”. THEN—They can seize the House and Senate! Once that is done watch assassinations rise, impeachments constant. Trump family and cabinet impeached. Trump will bring Communism to the US by not holding the line.He will be the failed President they want—Watch as they Nixon him into being a crook. Will it work?


17 posted on 06/01/2026 7:59:23 AM PDT by Forward the Light Brigade (. War is Hell, War IS a Crime.)
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To: Timber Rattler

Yes! Lets keep electing “Republicans” who have no intention of codifying anything Trump does. Lol. Screw the GOP. One man will get my vote this year - Victor Marx for Governor of Colorado. Other than that, I’m done with the scumbags.


18 posted on 06/01/2026 9:40:05 AM PDT by dware (Americans prefer peaceful slavery over dangerous freedom)
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To: Timber Rattler

Daily global oil consumption is about 102.6 million barrels a day. Every $10 increase in the price of oil costs just over a billion dollars a day. The US alone uses about 20% of the total. Before all this mess began oil was $70 a barrel or so. The last 90 days it has been around $100 a barrel or so.

So far, roughly, in the last 90 days Trump’s Folly has cost somewhere between $180 and $277 Billion dollars in additional incremental cost for just oil around the world. Our share of that is about 1/5. So far we have very little good to show for that cost. We continue to pour good money after bad.

What is truly amazing is how small the price of all the world’s oil is compared to what our governments piss away every day.


19 posted on 06/01/2026 10:00:28 AM PDT by Sequoyah101 (Opinions and belly buttons, everybody has one and they get to show them if they want to.)
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To: Gunslingr3
Congress controls spending. Or, more accurately, should.
20 posted on 06/01/2026 10:06:10 AM PDT by grey_whiskers (The opinions are solely those of the author and are subject to change without notice.)
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