Frankfurt, Germany (AP) — Prospects for a stimulus-fueled recovery in the United States are pushing up market interest rates — and that’s a headache for European policymakers because their economy remains stuck in a double-dip recession and can’t afford higher borrowing costs.

European Central Bank President Christine Lagarde is expected to address rising bond yields on Thursday. She holds a news conference after the bank’s 25-member governing council meets to decide monetary stimulus settings for the 19 countries that use the euro currency.

Here’s Lagarde’s problem: Interest rates on 10-year government bonds have risen by about 0.3% since the start of the year. It’s regarded as a spillover from higher bond yields in the US. The higher U.S. bond yields reflect expectations for stronger growth and inflation, following plans for a $1.9 trillion stimulus bill pushed by new U.S. President Joe Biden.

More in category

San Jose looks to reform police department
April 20, 2021KRON4
San Jose looks to reform police department
Despite growing chorus, DOJ is limited in police probes
April 20, 2021AP News
Despite growing chorus, DOJ is limited in police probes
Hitting latest vaccine milestone, Biden pushes shots for all
April 20, 2021AP News
Hitting latest vaccine milestone, Biden pushes shots for all
Biden to America after Floyd verdict: ‘We can’t stop here’
April 20, 2021AP News
Biden to America after Floyd verdict: ‘We can’t stop here’
China's Xi to participate in Biden's climate summit
April 20, 2021ABC News
China's Xi to participate in Biden's climate summit
Floyd's hometown exalts in verdict but tempers expectations
April 20, 2021ABC News
Floyd's hometown exalts in verdict but tempers expectations
Flashpoint of 1992 LA riots becomes a place of celebration
April 20, 2021ABC News
Flashpoint of 1992 LA riots becomes a place of celebration
Opinion: Biden delivered the Chauvin verdict speech America needed
April 20, 2021CNN
Opinion: Biden delivered the Chauvin verdict speech America needed
Police reform legislation has
April 20, 2021CBS
Police reform legislation has "more momentum" post Chauvin verdict
Biden calls Chauvin murder conviction a
April 20, 2021CBS
Biden calls Chauvin murder conviction a "step forward"
Warren invites billionaire critic to hearing on raising his taxes
April 20, 2021CBS
Warren invites billionaire critic to hearing on raising his taxes
Photos show Russia's military buildup near Ukraine
April 20, 2021CBS
Photos show Russia's military buildup near Ukraine
Chinese President Xi to attend Biden's climate change summit
April 20, 2021MSNBC
Chinese President Xi to attend Biden's climate change summit
MLK's Niece Says Not Requiring Voter ID Tries to Erase Black Identities
April 20, 2021Newsweek
MLK's Niece Says Not Requiring Voter ID Tries to Erase Black Identities
Australia plans to spend $417 M on hydrogen, carbon capture
April 20, 2021AP News
Australia plans to spend $417 M on hydrogen, carbon capture
Guilty verdicts in Floyd’s death bring joy -- and wariness
April 20, 2021AP News
Guilty verdicts in Floyd’s death bring joy -- and wariness
Corporate America boosts Biden's inaugural committee
April 20, 2021Politico
Corporate America boosts Biden's inaugural committee
Why Boris Johnson is dropping everything for soccer
April 20, 2021Politico
Why Boris Johnson is dropping everything for soccer
Gemma Chan calls out British newspaper for making light of Prince Philip's 'casual racism'
April 20, 2021USA Today
Gemma Chan calls out British newspaper for making light of Prince Philip's 'casual racism'
The Death Penalty Declines As Global Recorded Executions Reach Lowest Level in a Decade
April 20, 2021TIME Magazine
The Death Penalty Declines As Global Recorded Executions Reach Lowest Level in a Decade
Chad President Deby, ally in fighting extremism, dies at 68
April 20, 2021AP News
Chad President Deby, ally in fighting extremism, dies at 68