Federal official Jeffrey Schmid said that the current inflation problem is not solely driven by energy prices. Schmid noted that price increases are widespread across a wide range of goods and services. 📌 In summary: He highlighted that inflation is broad-based.

🚨 BREAKING 🇯🇵 Japan ne 25 bps Interest Rate Hike kiya — rates 1995 ke baad highest level par! Inflation ke pressure ke beech Global Rate Hike Cycle phir laut raha hai? 👀 #BOJ #Japan #Inflation #InterestRates #Markets

🚨🇯🇵 JAPAN JUST LOST CONTROL OF THE YEN THE BOJ PUSHED RATES TO A 31-YEAR HIGH THE YEN CRASHED 1.3% ANYWAY THE CENTRAL BANK FIRED ITS BIGGEST RATE WEAPON SINCE 1995 THE CURRENCY MOVED IN THE WRONG DIRECTION NOW JAPAN HAS TWO UGLY OPTIONS STOP HIKING → THE YEN KEEPS DYING KEEP HIKING → JAPAN’S BOND MARKET TAKES THE HIT THIS ISN’T CONTROL IT’S A POLICY TRAP

The U.S. 2-Year Treasury Yield Rises to 4.74%. This is the highest level since July 2024, following the Fed’s signal that further rate hikes remain possible. With oil still above $100, inflationary pressures remain stubborn, and short-term yields continue to be pushed higher. If expectations for additional Fed hikes persist, the 5% level for the 2-year yield is no longer out of reach—and that’s what could truly pressure risk assets.

For the first 150 years, the US had no Federal regulation, no income tax, and a hard-money standard. That’s what made America great, not fiat, socialism programs, or $34T in excess government spending.

🚨 BITCOIN: $BTC climbs toward $81K after the BOJ raises rates to 1.25%. The real test comes Sept. 24 as the new rate takes effect. My take: Yen strength could bring more volatility. 👀

🔴 Food inflation is the next major threat to global bonds: A UN index of global food commodities has risen to its highest level since late 2022. Looking ahead, JPMorgan is expecting global food inflation to rise to 5% in H1 2027, up from 2.8% in the same period this year. The risk is being driven by several forces at once, including global crop production disruption, tight fertilizer supplies and shipping disruptions The risk is being driven by several forces at once, including disruptions to global crop production, tight fertilizer supplies and attacks on key shipping routes that are making food and agricultural inputs more expensive to transport. As a result, some investors are buying inflation-linked bonds and reducing exposure to countries most vulnerable to food-price shocks. Meanwhile, global yields have already surged to their highest level since the Great Financial Crisis. After energy battered bond markets this year, food inflation could become the next shock investors should be aware of.

⚠️ Private equity is facing a new wave of pressure: The Fed’s Wednesday rate hike is expected to deepen the problems already weighing on private equity, where a record $349 billion is tied up in so-called “zombie funds.” These are private-equity funds that have held companies for more than the typical 10-year period but are still struggling to sell them and return the money to investors. Higher rates exacerbate the issue by increasing borrowing costs for the companies owned by these funds, while also making potential buyers less willing to pay high prices. The amount of capital stuck in these funds surged ~65% from the end of 2021 through the end of 2025, after private-equity sales slowed following the Fed’s rate hikes in 2022. Meanwhile, private-equity firms now control more than $2 trillion in assets in the US, while private credit could come under increasing stress as higher rates raise borrowing costs for companies and make it harder for borrowers to service their debt. The bigger the backlog becomes, the harder it could be for private-equity firms to raise new funds and generate the fees they rely on. The longer rates stay elevated, the greater the risk that private equity faces a broader squeeze on fundraising, valuations and returns.

Nope. Long term rates = Inflation + Growth rate In a recession this figure is near zero.

Bessent & Co. The US 10-year yield hovering around 5% is, at this stage, less interesting than it might appear. It could drift higher from here - or not - the number itself is not the story. The story is bond volatility, which remains the variable that actually matters and which continues to be criminally underreported in favour of yield level commentary that is considerably easier to turn into a headline. Again: Here is why vol matters more: when it rises, prime brokers, CCPs, and the broader ecosystem of financial intermediaries respond by increasing haircuts on collateral. Post 102 to borrow 100, and suddenly you need to post 104. Multiply that across the system and you have a meaningful liquidity drain that has nothing to do with rate levels and everything to do with the risk management departments quietly adjusting their spreadsheets. Bessent is not fighting the bond vigilantes over yield levels. He is fighting them over volatility, which is the correct battle to be having. And as of now, he appears to be winning. A less exciting headline. A considerably more important observation.