Woofun AI reports that strategists at ING, Goldman Sachs, and Barclays highlight a growing risk that central banks, including the Federal Reserve, may raise interest rates instead of cutting them.

This shift is driven by factors beyond war-induced inflation, such as an expanding public debt burden and the artificial intelligence investment boom.

Data indicates that real yields in the United States are rising, suggesting bond investors are concerned about structural economic pressures rather than just price shocks from the Iran conflict. Strategists note that even if oil price-driven inflation subsides, long-term yields may not fully reverse, keeping market borrowing costs near multi-year highs and continuing to strain government finances and global economies.