- Bond yields surged as President Donald Trump entered the Oval Office amid fears his economic agenda would prove inflationary. This week, however, investors grappled with softer economic data and considered how Trump’s tariff threats could slow growth, which might give the Federal Reserve room to cut rates.
President Donald Trump has made it clear he wants to lower borrowing costs for Americans. Initially, that commentary included plenty of pressure on the Federal Reserve to cut interest rates, but Trump and Treasury Secretary Scott Bessent have seemingly turned their attention to the 10-year Treasury, the benchmark for mortgages and other common types of loans throughout the economy. The yield, or annual return, on the 10-year did finally decline in February—but maybe not for the reason the President wants.
