The Latest: Trump faces new inflation warning from bond market, adding to midterm challenges

The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government, causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.

Also, the United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire.

The nominal ceasefire between Iran and the U.S. has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war.

Here's the latest:

Former Colorado elections clerk and conspiracy theorist Tina Peters is scheduled to be released from prison Monday after serving less than a quarter of a nine-year sentence for her role in a scheme to copy her county’s election system.

Colorado Gov. Jared Polis, a Democrat, commuted Peters’ sentence last month following pressure from President Trump.

The Colorado Department of Corrections would not confirm the time of Peters’ release, and a representative for her attorney said Peters would not speak to the media when she’s freed.

Peters was the first local election official to be charged with breaching security after the 2020 election. She snuck in an outside computer expert affiliated with My Pillow Chief Executive Mike Lindell — who himself denied that Trump lost the White House in 2020 — and the person copied the county’s Dominion Voting Systems computer server as it was updated in 2021.

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Oil prices are rising following the latest fighting to threaten the U.S.-Iran ceasefire, but Wall Street isn’t very worried.

The S&P 500 slipped 0.1% early Monday, falling a bit below the record it set last week. The Dow Jones Industrial Average fell 166 points, and the Nasdaq composite was little changed.

Brent crude climbed 4.7%, and Treasury yields moved higher in the bond market. Tech stocks held up better than the rest of the market.

Science Applications International Corp. soared after becoming the latest U.S. company to report bigger profit for the latest quarter than analysts expected.

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A standoff between the White House and the Senate remains unresolved after Republican senators defiantly left town 10 days ago without passing legislation to fund President Trump’s immigration enforcement agencies.

Senate Republicans who are returning to Washington on Monday say they won’t have the votes to pass the Homeland Security spending bill until the White House works with them to place parameters on the new $1.776 billion settlement fund designed to compensate Trump’s allies. But Trump has shown little interest in doing so, even after a judge temporarily halted any payouts.

It’s unclear how they’ll settle the dispute.

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Former Federal Reserve Chair Jerome Powell used one of his first major public appearances since leaving office to defend independent institutions while accepting an award Sunday honoring his efforts to preserve the central bank’s independence.

Speaking at the John F. Kennedy Presidential Library overlooking Boston Harbor, Powell called universities, courts, Congress and the central bank “the foundation and the embodiment of our democracy” and argued that the Fed’s independence was a “priceless asset” that must be protected.

It was one of his most direct defenses of Fed independence, warning that a single administration’s decision to remove bank officials over policy differences would open the way for future elected officials to follow suit, ultimately undermining the credibility that the Fed has spent decades building.

Powell, who frequently clashed with Trump during his eight years as chair, stepped down as his term expired in May. He was succeeded by Kevin Warsh, whom Trump selected to lead the central bank.

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Trump on Saturday branded the federal judge who blocked his renovation of the Kennedy Center as “an anti Trump Hater” and predicted that the nation’s premier performing arts center, which he wanted to shutter for a two-year overhaul, will “soon be closed, probably never to open again.”

In a lengthy post on his Truth Social platform, Trump fumed about the Friday decision from U.S. District Judge Christopher Cooper, who also ordered Trump’s name removed from the center. Clearly angered by his latest legal setback, he said it was “impossible for me to be treated fairly,” tying Cooper’s ruling to earlier losses, including the Supreme Court’s rejection in February of his sweeping tariffs.

His post aimed to make the case for the project even as he says he’s giving up on it. Hours after Cooper’s decision, Trump said he was backing away from the renovations and making arrangements to relinquish control to Congress of what, until the Republican president’s second term, had been known as the John F. Kennedy Center for the Performing Arts.

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An upcoming celebration of America’s 250th anniversary, “The Great American State Fair,” recently had several musical guests back out partly over the event’s ties to President Trump. Now, Trump himself is slated to headline the festivities, the organizers said Saturday.

“I understand Artists are getting ‘the yips’ having to do with their performance,” Trump posted to his social media platform Truth Social Saturday, adding that he was thinking of bringing “the man who some say is the Greatest President in History (THE GOAT!), DONALD J. TRUMP, to take the place of these highly paid, Third Rate ‘Artists.’”

The group organizing the June fair on Washington’s National Mall, Freedom 250, confirmed the billing in a statement, writing, “We are excited to announce that President Trump will personally kick off this historic celebration on Wednesday, June 24.”

Freedom 250 is billed as nonpartisan, but was launched last year by Trump and is led by a former State Department appointee from Trump’s first term. Several artists, including Bret Michaels, the Commodores and Martina McBride dropped out last week.

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The United States said Monday that it bombed radar and drone sites in Iran after Tehran shot down an American drone over the weekend. Iran then said it launched a strike of its own, and Kuwait reported incoming fire.

The nominal ceasefire between Iran and the U.S. has been repeatedly tested with such back-and-forth attacks, even as officials from both countries try to negotiate an end to the war. It’s not clear how close they are to a deal — and there is always the risk that an attack could derail those talks.

In the meantime, Iran has maintained its chokehold on the Strait of Hormuz, disrupting global energy supplies and driving up the price of fuel around the world, with far-reaching consequences.

Fighting has also escalated between Israel and the Lebanese militant group Hezbollah, despite their nominal ceasefire. Israel has extended its occupation deep into Lebanon, and Hezbollah — which joined the war in support of its main backer, Iran — continues to launch drones into Israel.

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The world is getting more uptight about lending money to President Donald Trump’s government — causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.

The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government. Interest rates on a 10-year U.S. Treasury note are topping 4.44%, up from 3.95% before the war started at the end of February. Average mortgage rates have climbed to their highest levels in nine months, while auto sales are slumping.

The challenge is global in scale, as interest rates have risen for multiple countries as the world has been adjusting to the prospect of higher inflation, mounting questions about the sustainability of government debt and a dramatic surge in investment in artificial intelligence.

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President Donald Trump looks out the window of his limousine at the construction in Lafayette Park as he departs the White House, Saturday, May 30, 2026, in Washington. (AP Photo/Alex Brandon)

President Donald Trump pumps his fist as he arrives at the White House, Sunday, May 31, 2026, in Washington. (AP Photo/Alex Brandon)

BOGOTA, Colombia (AP) — Bombastic pro-Trump lawyer Abelardo de la Espriella pulled ahead in Colombia’s race for the presidency in the first round of elections over the weekend, capitalizing on a growing appetite for heavy-handed crackdowns on criminal groups across Latin America.

The outcome dealt a political blow to second-place finisher, progressive Sen. Iván Cepeda, and his ally, President Gustavo Petro. Both questioned the results of the election Sunday night, without providing evidence.

De la Espriella rapidly gained traction in the lead-up to Sunday’s election, winning nearly 44% of the vote, and surpassing Cepeda, who had consistently led polling throughout the campaign and won less than 41% of the vote.

The two are slated to continue to a runoff election on June 21, where de la Espriella is expected to scoop up additional votes from Colombians who supported other conservative candidates in the first round.

Cepeda will face an uphill battle in the runoff, said Sergio Guzmán, a political analyst. “Abelardo de la Espriella won the first round. In other words, that’s a shift in public opinion that is very difficult to overcome. So now Abelardo is emerging as the likely favorite to win.”

De la Espriella, known as “El Tigre” or “The Tiger,” has never held office in Colombia and prided himself on living a luxurious life in Italy before deciding to run for president. He pitched himself as an outsider who would cozy up to U.S. President Donald Trump and follow El Salvador President Nayib Bukele's war on gangs, which has driven down homicide rates but fueled accusations of human rights abuses.

“I will wipe out narcoterrorism and those who I've declared a military target like cockroaches, like rats. I will unleash upon them the wrath of God never seen before,” de la Espriella said in an interview with The Associated Press in the final stretch of the campaign, where he promised to open 10 mega-prisons to fight crime.

He joins a growing number of leaders across Latin America — from Chile to Honduras — seeking to latch onto the “Bukele model” as voters across Latin America are increasingly ditching leaders that pitched progressive policies aimed at addressing the root issues of conflict, such as lack of opportunities for young people and corruption.

De la Espriella's supporters come from a wide range of backgrounds. Yolanda Peréz, a 64-year-old woman serving coffee in the downtown of Colombia's capital, Bogotá, said with a wink the day before the election: “I'm thinking of voting for El Tigre.”

Miguel Maheca, a 20-year-old first-time voter, flashed his voting ballot to his mother as he strolled out of the polling station on Sunday, saying with a grin, “Love isn't what's going to make us safe in Colombia."

But experts say El Salvador's security successes will be nearly impossible to replicate in a country like Colombia, which is more than 50 times larger than the Central American nation and has many more armed groups fighting for territory.

The polarized vote comes as the Trump administration is playing a more aggressive role in Latin America than any U.S. government in decades, placing mounting pressure on countries like Colombia, Mexico and Ecuador to crack down on crime.

De la Espriella, 47, made a name for himself as a lawyer defending high-profile clients such as former President Álvaro Uribe, as well as controversial figures like Alex Saab, a close ally of Venezuela’s ousted president Nicolás Maduro who faces legal issues in the U.S. and whom he stopped representing about seven years ago.

De la Espriella's rise as a presidential candidate spells trouble for progressive Cepeda, who consistently led polls in the lead up to Sunday's election, though his competitor quickly gained speed in the weeks ahead of the vote.

Cepeda is a progressive senator who has promised to carry on his ally Petro's fraught plan to achieve “total peace” by negotiating peace pacts with guerrillas and criminal gangs.

Their political movement was born from a fierce rejection by many Colombians of a militarized offensive by Uribe in decades past used to beat back the guerrillas of the Revolutionary Armed Forces of Colombia, or FARC, which ended in thousands of civilians being killed by Colombian forces in a scandal known as “false positives.”

De la Espriella “represents a return to the paramilitary politics and drug-trafficking — a mafia-run, plutocratic and corrupt past that the country experienced during Álvaro Uribe’s two administrations,” Cepeda said on Sunday.

On Monday, Cepeda called on de la Espriella to debate him ahead of the second round of elections.

Petro, a former rebel, won Colombia's presidency in 2022 in a historic election that ended decades of right-wing domination by leaders from Uribe's political movement. He gained massive support from rural-dwelling, Indigenous and poorer Colombians who felt they had never been directly spoken to by Colombian leaders.

Now, that movement is backed into a corner.

“This is de la Espriella’s election to lose,” wrote Renata Segura, director of International Crisis Group's Latin America and the Caribbean Program. “Cepeda thought he could win appealing squarely to the left, and that proved to be a massive mistake. How he pivots in the next month will determine if he has any chance to win.”

Follow AP’s coverage of Latin America and the Caribbean at https://apnews.com/hub/latin-america

This version corrects the spelling of the first name of the leading candidate to Abelardo.

Supporters of presidential candidate Ivan Cepeda of the ruling Historic Pact coalition react as presidential election results are announced in Bogota, Colombia, Sunday, May 31, 2026. (AP Photo/Matias Delacroix)

Presidential candidate Ivan Cepeda of the ruling Historic Pact coalition addresses supporters after advancing to a runoff election in second place in Bogota, Colombia, Sunday, May 31, 2026. (AP Photo/Matias Delacroix) CORRECTION: Corrects Paloma Valencia to Ivan Cepeda, and photographer Jose Vargas to Matias Delacroix

Presidential candidate Abelardo de la Espriella of the Defenders of the Motherland movement addresses supporters from inside a bulletproof booth after leading the first round of the presidential election and advancing to a runoff in Barranquilla, Colombia, Sunday, May 31, 2026. (AP Photo/Ivan Valencia)

Supporters of presidential candidate Abelardo de la Espriella of the Defenders of the Motherland movement celebrate election results in Barranquilla, Colombia, Sunday, May 31, 2026. (AP Photo/Fernando Vergara)

Presidential candidate Abelardo de la Espriella of the Defenders of the Motherland movement depart a polling station after voting during the presidential election in Barranquilla, Colombia, Sunday, May 31, 2026. (AP Photo/Ivan Valencia)