The case for healthcare price caps

September 9, 2026

AI Summary

5 min read

Oil, bond yields, and a new experiment in healthcare affordability

Oil prices crossed $100 a barrel today after the U.S. attacked several Iranian oil tankers, marking the first time crude has hit that level since July. The move sent ripples through financial markets, pushing stock indexes lower and driving bond yields higher — including on the short end of the curve. The yield on the two-year Treasury note hit its highest level since July 2024, and the signal it sends about inflation and Federal Reserve policy is worth unpacking.

What rising short-term yields tell us about the Fed

Short-term Treasury yields are rising because higher oil prices feed into inflation across the economy — construction costs, delivery expenses for retailers, and so on. Gee Lebaugh, chief fixed income strategist at Jenny Montgomery Scott, explained that if inflation stays elevated or rises further, markets expect the Federal Reserve to hike interest rates. The new Fed chair, Kevin Warsh, "is at least threatening to be a little bit more aggressive in raising interest rates and fighting inflation," Lebaugh said, and that expectation hits short-term bonds hardest.

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What you'll learn

1 (01:32) **Oil Hits $100; Bond Markets React** - Oil prices cross the $100/barrel mark after the U.S. attacked several Iranian oil tankers, triggering a spike in short-term Treasury yields.
2 (04:56) **Decoding the Fed's New Communication Strategy** - Host Christian Schwab interviews former Fed Governor Randy Krosner about Chair Kevin Warsh's spare communication style and what it means for next week's FOMC meeting.
3 (09:06) **Predicting Next Week's Fed Meeting** - Krosner gives his forecast for the upcoming FOMC decision.
4 (11:12) **The Case for Hospital Price Caps** - A look at a bipartisan trend: states like Indiana and Vermont are passing laws to cap what hospitals can charge people with private insurance.
5 (13:28) **Hospital Concerns About the Caps** - Industry leaders push back, arguing the caps threaten hospital viability.
6 (14:38) **Why Economists Are Turning to Price Caps** - A former FTC official explains the shift in thinking away from free-market solutions.
7 (15:45) **Market Numbers** - The Dow, Nasdaq, and S&P 500 all fell for the day.

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Show Notes

Healthcare affordability is top-of-mind for many Americans right now. And for a long time, state legislators’ only avenue for easing that burden was through care subsidies. But what about looking at the problem from a whole new angle? In this episode, two states, unalike in their political leanings, try out healthcare price caps. Plus: Rising oil prices push up short-term bond yields, more homebuyers look into adjustable-rate mortgages, and we try to predict Fed Chair Warsh’s next move.

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