U.S. Treasury yields edged higher following stronger-than-expected inflation data. The 10-year yield held steady at 4.253%, while the 2-year yield rose 2 basis points to 3.732%.
Core inflation, which excludes food and energy, climbed to 2.7% in May—higher than the 2.6% economists predicted and up from April’s 2.5%.
The inflation surprise comes as President Trump escalates tensions with Fed Chairman Jerome Powell, criticizing the Fed’s cautious stance on interest rates amid tariff uncertainty.
Trump claims to have a shortlist of replacements and may announce Powell’s successor as early as September, well before Powell’s term expires in 2026.