Trump's 'Rocket Fuel' Plan Blows Up as Interest Rates Soar

President Donald Trump has been pushing for interest rate cuts to boost the economy, calling it 'Rocket Fuel!' But his efforts have backfired, with rates rising since the war in Iran began. The government is getting squeezed, with $827 billion spent so far this fiscal year on servicing the national debt.

Interest rates are now at their highest levels in nearly two decades, with 30-year U.S. Treasury bonds hitting a record high. Trump has largely ignored the jump in interest rates and continues to portray the economy as booming, despite an annual growth rate of just 1.5% for the prior three months.

Republicans are worried about the impact on voters ahead of the midterms, with Trump's policies driving up borrowing costs. His tariffs, which began last year, caused rates to jump quickly, and his construction of data centers for artificial intelligence also contributed to higher interest rates.

The Federal Reserve has chosen not to intervene, letting market forces set interest rates. Fed Chair Kevin Warsh said the markets are reflecting higher inflation and policy uncertainty, and that this is a positive change.