This week, we discuss a series of perplexing market moves as inflation readings, oil prices, and Treasury yields all moved higher at once. Both headline CPI and PPI surprised to the upside, placing the Federal Reserve and its new Chair, Kevin Warsh, in an increasingly difficult position. According to the latest inflation nowcast from the Federal Reserve Bank of Cleveland, inflation is expected to come in at more than double the Fed’s two percent target. Meanwhile, yields on ten and thirty year Treasuries climbed sharply as investors demanded greater compensation for rising inflation risks and mounting concerns over America’s fiscal trajectory. The yield on the thirty year Treasury bond has now reached its highest level in nineteen years. Oil prices have also continued their ascent. Equity investors, however, appear largely unconcerned, choosing instead to focus on strong earnings reports from the hyperscalers. The divergence between buoyant equity markets and increasingly anxious bond markets suggests that investors are drawing very different conclusions about the economic outlook.