Bond investors are betting that the Federal Reserve will have to contend with rising prices once again, and soon, in the wake of President Donald Trump’s plan to slap tariffs on trading partners and some industrial sectors.

Some economic forces are impossible to ignore. That seems to be developing between the Trump White House and the bond market, which is indicating that it is displeased.

President Trump’s trade-war tactics have been tough for investors to parse, especially as stocks zigzagged to start the week amid mixed messages from the bond market.

U.S. Treasury Secretary Scott Bessent's pledge to contain yields on 10-year Treasury notes met some skepticism in the bond market on Thursday, as inflationary pressures and expectations of a widening federal deficit threaten to outweigh efforts to curb borrowing costs.

The bond market has already begun pricing in the potential for higher interest rates. Even the day after Trump’s election victory, rates spiked on higher inflation expectations. Yet this expectation conflicts with that of other investors who are expecting the Fed to cut rates this year.