A key baseline for the cost of money has jumped more than four percentage points over three years.
The International Monetary Fund's former chief economist warned the Fed “still has a fight ahead.”
Yields on longer-dated bonds have been pushing sharply higher, drawing closer to their short-term counterparts.
If a shutdown begins on Oct. 1, S&P said it expects the federal government to continue providing essential service.
The measure of how much long-term bond investors are compensated had reached a generational low in 2020, partly due to declining inflation.
Markets have been on watch for further credit actions after Fitch Ratings downgraded the U.S. earlier this year.
Bond yields have been rising since the Fed last week signaled that it may raise rates once more this year.
Recent inflation data could weigh in favor of three cuts in 2024, versus four, bank analysts wrote.
Investors have piled into the money funds ever since the Federal Reserve began tightening.
That data led investors to lower the odds of another Fed interest rate hike this year.
Please log back in before proceeding.
There was an error logging in. Please try again.
Congrats! You are now logged in. Your exam is being submitted.
