US Treasury yields rose on Thursday as markets digested reports that President Donald Trump and his political allies are escalating efforts to restructure the Federal Reserve.
The push aims to align the central bank’s operations more closely with the administration’s policy preferences, raising fresh concerns about the independence of monetary policy.
The 10-year Treasury yield climbed, while the 2-year yield also moved higher, reflecting a repricing of term premium and policy uncertainty.
Investors are increasingly factoring in the risk that political interference could complicate the Fed’s ability to manage inflation and growth, leading to wider volatility in the bond market.
This development follows a recent court setback for the administration, which had previously sought to influence Fed appointments and policy decisions.
The renewed campaign to reshape the central bank has drawn criticism from market participants and economists who warn that undermining Fed independence could lead to higher long-term interest rates and reduced confidence in US monetary policy.