Trump's Interest Rate 'Rocket Fuel' Dreams Sputter Amid Rising Inflation

President Donald Trump has been pushing for interest rate cuts to boost the economy, calling them 'Rocket Fuel.' However, his efforts have been met with resistance from the Federal Reserve, which has kept rates steady despite rising inflation. Since the war in Iran began at the end of February, borrowing costs have increased, making it more expensive for families to afford mortgages and auto loans.

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

Despite Trump's claims that the economy is booming, the annual growth rate for the prior three months was a sluggish 1.5%. Warsh has stated that he prefers to let financial markets set interest rates rather than intervening with central bank action.