Trump's Interest Rate Cuts Fail as Borrowing Costs Rise

President Donald Trump's efforts to slash interest rates have failed so far. The president had touted lower borrowing costs as 'Rocket Fuel' for economic growth, but since the war in Iran began in February, money has become more expensive.

According to the Federal Reserve, inflation continues to run hot, and despite Kevin Warsh, the Fed's new chair, saying he has been content to let financial markets set rates, the opposite is happening. The 10-year U.S. Treasury note saw its interest rate shoot up above 4.7% on Friday.

The Trump administration had hoped to campaign on falling mortgage rates and a bipartisan bill to increase home construction, but these efforts have stalled. Freddie Mac said Thursday that 30-year rates were averaging 6.66%, essentially unchanged from a year ago.