The hottest US inflation in four decades will push the Federal Reserve to raise interest rates more aggressively this year, and a recession may not be far behind.
Those are the dramatic signals coming from markets, which on Monday saw yields surging across the board: 10-year rates hit the highest since 2011, 30-year yields climbed to the highest in more than three years and rates on both two- and three-year notes jumped as much as 20 basis points on the day. Bloomberg’s dollar gauge rose as much as 1%, adding to a backdrop that sparked a spiral in risky assets.
