Treasury Secretary Janet Yellen has declared that the US has hit its federal debt limit, kicking off an intense political battle that puts the global financial system at risk.

In the rough year ahead, bonds might be one of the only bright spots. It would mark a dramatic turnaround from 2022, when bonds fell alongside almost every other asset class, posting their worst year in a generation.

When stocks are plunging, checking your investment accounts is risky business. The market turbulence is jarring for younger investors, who had gotten used to the idea that stocks always go up. And for those with a bit more experience, watching hard-earned money suddenly disappear is a terrible experience.

Most analysts expected some action on interest rates from the U.S. Federal Reserve in 2022 — but maybe not the five rate hikes they’re now pricing in. Inflation was clearly driving upwards, but we’re seeing much higher, more consistent price increases.