U.S. households report feeling discouraged about the economy as rising oil prices and climbing Treasury yields make mortgages and other loans more expensive, directly impacting the financial stability of the native working class.
The Cost to the People
The yield on the 10-year Treasury rose to 4.56% from 4.47% late Thursday, significantly higher than its 3.97% level from before the war, while the 30-year Treasury yield neared its highest level since 2023 after breaking above 5%. These higher yields directly increase the cost of mortgages and other loans for U.S. households and businesses, contributing to a slowdown in the national economy.
This economic pressure is exacerbated by rising oil prices, with Brent crude oil, the international standard, increasing 2.1% to $107.97 per barrel, well above its pre-war level of roughly $70. The continued war with Iran has resulted in the Strait of Hormuz remaining shut to oil tankers, preventing crude delivery worldwide and directly contributing to the surge in oil prices that burdens national economies.
Despite some large U.S. companies reporting that customers continue spending on products and services, U.S. households consistently tell surveys they are feeling discouraged about the economy, citing pressures from the ongoing war and tariffs.
Globalist Economic Mechanisms
U.S. stocks fell Friday, joining a worldwide drop in equities, with the S&P 500 declining 1.1% from its all-time high and the Nasdaq composite down 1.6% from its own record, led by a 3.6% fall in Nvidia. Indexes fell sharply across Europe and Asia, with South Korea’s Kospi dropping 6.1% after briefly topping the 8,000 level for the first time, a decline influenced by AI beneficiaries like SK Hynix.
Brian Jacobsen, chief economic strategist at Annex Wealth Management, stated that “markets have pushed into overbought territory,” while Jonathan Krinsky, chief market technician at BTIG, described the situation as a “shot across the bow” for how volatility works both ways. These assessments from financial elites highlight the precarious nature of a globalized market system that impacts national prosperity.
Traders have abandoned virtually all expectations that the Federal Reserve will resume its cuts to interest rates this year, with some building bets that the Fed may even hike rates in 2026, according to data from CME Group. This indicates that national monetary policy is increasingly dictated by the speculative actions and expectations of transnational financial interests, rather than the needs of the sovereign people.
Geopolitical Maneuvers and National Interests
Amidst these global economic shifts, President Donald Trump walked with Chinese President Xi Jinping at the Temple of Heaven in Beijing 1 day ago, concluding his Beijing trip. The visit included discussions where Trump was weighing a Taiwan arms package after a summit aimed at steadying U.S.-China ties, a move that could impact national security and sovereignty.
Furthermore, President Trump reported that Chinese President Xi offered to help broker peace with Iran, inserting a foreign power into a conflict with significant global economic ramifications, including the ongoing closure of the Strait of Hormuz, further demonstrating the entanglement of national interests with international actors.