Elevated Treasury yields and steady mortgage rates, plus a manufacturing uptick, create mixed impacts for Indiana businesses

The article reports that Fed Chair Kevin Warsh used his Jackson Hole remarks to signal a renewed focus on fighting inflation, and markets reacted less sharply than in July. Long-term Treasury yields have stayed high (the 10-year about 4.7%, the 30-year above 5%), pushing mortgage rates to roughly 6.7% and raising borrowing costs for consumers; interest on the federal debt is now cited as the third-largest budget item, exceeding defense.

Labor-market revisions from the BLS lowered reported job growth for much of 2025 and early 2026 by 79,000, with private-sector payrolls revised down by 178,000. The piece highlights a national manufacturing improvement — described as a bright spot that should benefit Indiana and Kentucky — but cautions that the latest tariff dispute with Canada could hurt states with substantial trade ties. It also notes that upcoming CPI and PCE readings and payroll reports will shape whether the Fed holds, hikes in September, or could even cut later in the year.

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