“In the early days of President Trump’s second term, his economic advisers laid out a simple theory: Show the bond market that Washington was serious about closing its gaping deficits, and long-term interest rates would fall on their own. Trump could leave the Federal Reserve alone,” the Wall Street Journal reports.
“It hasn’t worked out that way.”
“Inflation is rising, the Fed is raising rates and the 10-year Treasury yield is well above where it stood on Inauguration Day, when the new team blamed high rates on runaway Biden-era spending. Last week, that yield reached the highest level since 2007 as investors weighed a resilient economy, prolonged energy disruptions that threaten to aggravate price pressures and a central bank losing patience waiting for them to fade.”
