Surging U.S. government bond yields are raising borrowing costs across the economy and complicating Federal Reserve policy deliberations. The 10-year Treasury yield rose above 5%, its highest level since 2007, despite Treasury Secretary Scott Bessent’s push to contain yields, including an expanded debt buyback operation. Analysts say the Fed would resist calls to purchase government debt unless market conditions deteriorate sharply. A quarter-point rate increase to 3.75% to 4.00% was expected after the Fed’s two-day meeting, as recent inflation readings remained high. Quantitative easing (large-scale central-bank bond purchases) could calm stressed markets but would challenge Fed independence, conflict with efforts to return inflation to its 2% target and enlarge a $6.7 trillion balance sheet that Fed Chairman Kevin Warsh wants to reduce. The Treasury-Fed Accord of 1951 ended the Fed’s earlier practice of capping borrowing costs at Treasury’s request. New York Fed President John Williams said rising yields reflect economic strength and heavy technology investment, while Treasury’s interventions did not complicate monetary-policy decisions.