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Bond market signals rising risks even as the Fed holds rates
The shift in bond market pricing is expected to raise borrowing hurdles, affecting home buyers and costs for major infrastructure projects including A.I. data centers.
The New York Times Business reports that even though the Federal Reserve did not raise rates, the bond market has been signaling rising risks through the way it is pricing interest rate expectations.
The outlet links that bond market message to potential economic pressure points, including hardship for home buyers and higher hurdles for A.I. data centers, tying the move in rates to real-world financing conditions.
The report also notes that the same higher-rate backdrop could be beneficial for retirees, reflecting a tradeoff between borrowing costs for some and income opportunities for others.