Trump's Interest Rate Cuts Stall as Borrowing Costs Rise

President Donald Trump has been losing his battle to cut interest rates. He previously pressed the Federal Reserve to slash its benchmark rates, calling it 'Rocket Fuel' for growth and making housing more affordable.

However, 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 also getting squeezed, having 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 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 fall.