Bond markets rattle economy, sparking controversial buyback

Welcome to The Hill's Business & Economy newsletter{beacon} Business & Economy Business & Economy   The Big Story  Bond markets rattle economy, sparking controversial buyback The U.S. bond market is raising alarm bells for the economy, forcing the Trump administration to take emergency measures to ease the immediate impact on American pocketbooks.  Yuki Iwamura, Associated PressLong-term borrowing costs hit their highest levels across the world on Tuesday, with the cost for the U.S. government to borrow money reaching its highest rate in nearly two decades.  Experts say the unpredictability surrounding the Iran war, President Trump’s erratic trade policies, massive spending on artificial intelligence and the soaring national debt are all contributing to the choppy economic waters.  “One explanation is uncertainty,” said Benjamin Chabot, an adjunct associate professor at Northwestern University and a former senior policy adviser at the Federal Reserve.  “We have a new Fed Chair. We have an FOMC [Federal Open Market Committee] that looks legitimately divided about what the proper policy path is, and that’s largely driven by uncertainty about the economy,” he said.   The yield on the 30-year Treasury bond surpassed 5.3 percent on Tuesday, marking the highest yield since April 2007 — mere months before the start of a financial crisis that upended the global economy in the late 2000s.   The 30-year bond yield ticked down to 5…