Is the US bond market more scared of the government’s deficit than inflation itself?

Published October 9, 2026 6:45am ET



As in 2024, with polls open for the midterm elections, the cost of living remains voters’ top priority. As for investors, their primary concern in the aftermath of the Federal Reserve’s first rate hike since 2023 isn’t inflation in particular. Rather, it’s the federal government’s deficit.

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