Rising Interest Rates Spark Fears of Economic Crisis

Recent surge in long-term interest rates to highest since 2007 raises risk of financial crisis and economic hard landing.

Rise in real rates without Fed pushback tightens financial conditions, threatening growth.

Triggered by deficit concerns, foreign selling, and muddled Fed messaging on rate path.

Potential "near-term disruptive effect" like bank failures in March.

Powell comments added "fuel to the fire", policymakers monitoring risks of extreme moves.