A top Federal Reserve official said the steep cost of President Trump's major policy bill caught the bond market off-guard, leading to a spike in U.S. interest rates.

In a Thursday interview, Federal Reserve Gov. Christopher Waller said bond traders were "surprised" by a lack of "fiscal restraint" in the House GOP's bill — passed earlier in the day — to implement Trump's agenda.

Yields on U.S. Treasury bonds have soared throughout the week as the House advanced the One Big Beautiful Bill Act, which is expected to add trillions to the national debt. The bill extends and expands upon Trump's 2017 tax cuts while........

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