Market tides turn as Trump's policy weaves inflation expectations: Treasury yields surge, the consumer price index climbs, and global markets realign in anticipation of a reshaped Federal Reserve strategy and the unfolding tapestry of a Republican-led legislative landscape. US Treasury bond yields surged yesterday as financiers revised their expectations for Federal Reserve rate cuts. Just ten days ago, the market was betting on four cuts by June. Now, the consensus has shifted to just two. The culprit? Donald Trump's policies, which are seen as inflationary.