The government’s fiscal policy is fairly neutral now for a reason: More stimulus spending could hurt the Fed’s fight against inflation.

Federal Reserve chair Jerome Powell said that we “don’t really know” why long-term bond yields have been going up.

Could be good, could be bad.

As the Fed wraps up its two-day meeting, economists are looking to the Treasury Department for details on how the federal government plans to borrow money through the end of the year.

The Bank of Japan’s “yield curve control policy” could be on its way out as central banks around the world raise rates to beat inflation.

When the central bank makes money, it hands it to the Treasury. But now it’s losing money as it pays interest to banks on their deposits.

The yield on the 10-year Treasury briefly hit 5%, the highest level since 2007. A resilient economy and expanding debt are pushing rates up.

Jerome Powell spoke Oct. 19 and said the Federal Open Market Committee would be “proceeding carefully.”

The yield hit a 16-year record Tuesday. Could that mean trouble for the Federal Reserve’s effort to cool inflation and prevent a recession?

Announcing its decision yesterday, the Fed also signaled it could hike rates one more time before year’s end.