The Bond Vigilantes Are Back and the Fed Is Cornered

Stagflation Conversations with Fexingo: High Inflation, Slow Growth, and 1970s Echoes · May 21, 2026 · 11m · transcript

With inflation sticky above 4 percent and the Fed about to swear in a new chair, bond markets are starting to dictate fiscal policy the way they did in the late 1970s. This episode of Stagflation Conversations with Fexingo looks at the mechanics of a bond vigilante revolt — what it means for Treasury yields, fiscal spending, and the real economy. Lucas breaks down the current ten-year yield dynamics and the breakeven inflation signal, while Luna questions whether the Fed under Kevin Warsh can credibly push back. We also touch on what rising jobless claims and a tightening labor market mean…