In a very simplistic way, bond prices are falling these days because investors are mainly concerned about two things. First, that rising inflation is making the bonds they are holding worth less. And second, that the U.S. government, under successive presidents, has had a habit of spending more money than it collects in taxes. Imagine suffering a pay cut without trimming back your expenses.
One of President Trump's first major legislative victories in his second term, for example, was signing a megabill that extended tax cuts that were implemented during his first administration — while also raising spending in areas such as border security.
Trump imposed a new set of sweeping tariffs this week, arguing they will benefit the U.S. economy — and American workers. But there is plenty of signs tariffs will end up hurting many households.
As a result of actions by Trump and past presidents, the U.S. debt pile is growing: In fact, on Wednesday the U.S. Treasury Department said federal debt hit a record-shattering $40 trillion for the first time.