RISING RATES

Summary from the TLDR Founders newsletter

Despite the Fed's rate cuts since September 2024, the 10-year Treasury yield has climbed to 4.7%. This seemingly paradoxical rise stems from three key factors: persistent inflation expectations driven by wage growth and oil prices, surprisingly robust economic growth with 3.2% GDP expansion, and renewed inflationary pressures from Trump's tariffs on Chinese imports. The combination suggests markets are pricing in longer-term inflation risks despite the Fed's accommodative stance.