WASHINGTON (AP) — President Donald Trump has been losing his own battle to cut interest rates.The president likes to vilify high rates as an affront to the size and strength of the U.S. economy, saying that America deserves the cheapest borrowing costs in the world. Trump for months publicly pressured the Federal Reserve to slash its benchmark rates, claiming it would be “Rocket Fuel!” for growth and make housing more affordable.But since the war in Iran began at the end of February, borrowing money has become more expensive, meaning fewer families can afford mortgages or auto loans. The government is getting squeezed, too — as it has spent $827 billion so far this fiscal year to service the national debt, more than it has devoted to national defense.The scope of the problem became clear this past week when Kevin Warsh, the Fed’s new chair picked by Trump, said in his second press conference on the job that inflation continues to run hot but offered no clear guidance on how to fix the problem.
Interest rates are rising, even though Trump pledged they would fallRates on 30-year U.S. Treasury bonds hit their highest levels in nearly two decades, the exact opposite of what Trump had pledged to voters. The 10-year U.S. Treasury note saw its interest rate shoot up above 4.7% on Friday, surpassing what the president inherited when he returned to the White House last year.
