Trump's Interest Rate Push Falters as Borrowing Costs Soar

President Donald Trump has been pushing for interest rate cuts to boost economic growth and make borrowing cheaper. However, his efforts have been met with rising interest rates, which are making it harder for families to afford mortgages and auto loans.

The government is also feeling the squeeze as it spends $827 billion this fiscal year servicing the national debt, more than what's devoted to national defense. The Federal Reserve's new chair, Kevin Warsh, recently stated that inflation continues to run hot but offered no clear guidance on how to fix the problem.

Despite Trump's claims that interest rates would be 'Rocket Fuel' for growth and housing affordability, they have instead risen, with 30-year U.S. Treasury bonds hitting their highest levels in nearly two decades. The 10-year U.S. Treasury note saw its interest rate shoot up above 4.7% on Friday.

Markets currently expect the Fed to raise rates again in September to reduce inflationary pressures. Warsh has said he's content to let markets set the rates rather than intervening, which has led to a premium for holding U.S. government debt.