President Donald Trump’s efforts to cut interest rates have been met with resistance, as borrowing costs continue to rise. Despite Trump’s public pressure on the Federal Reserve to slash its benchmark rates, the rates on 30-year U.S. Treasury bonds have hit their highest levels in nearly two decades.

Impact on the Economy

The rising interest rates have made borrowing more expensive, affecting families’ ability to afford mortgages and auto loans. The government is also feeling the squeeze, having spent $827 billion so far this fiscal year to service the national debt, more than it has devoted to national defense.

The Federal Reserve, led by new chair Kevin Warsh, has indicated that it will not intervene to lower interest rates, instead allowing the financial markets to set the rates. This approach has been seen as a positive development by some, as it allows the markets to respond to economic conditions.

Political Implications

The rising interest rates have become a concern for Republicans ahead of the midterm elections, as Trump’s policies have contributed to the increase. The party had hoped to campaign on falling interest rates and improved housing affordability, but these plans have been derailed by the rising borrowing costs.

Trump has continued to portray the economy as strong, despite the sluggish annual growth rate of 1.5% reported by the government. The president has also ignored the jump in interest rates, instead focusing on the low unemployment rate and solid consumer spending.

Original reporting: KTBS 3 (Shreveport) — read the source article.