President Donald Trump wants lower interest rates. Achieving that objective will require overcoming bigger obstacles than Fed Chair Jerome Powell.<\/p>\n\n\n\n
There are structural forces that drive the cost of borrowing, and right now they\u2019re pointing up. Governments and businesses are piling on debt to pay for tax cuts, military spending, and AI investments \u2014 which means more demand for credit. As the Baby Boomers retire and China decouples from the US, the pool of saving to finance those loans is drying up.<\/p>\n\n\n\n
Attacks on Fed independence<\/a>\u00a0risk shrinking the pool further. Investors don\u2019t want to see the value of their hard-earned cash inflated away by a central bank under political control.<\/p>\n\n\n\n Add all of this together and it points to a world where 4.5% may be the new normal for ten-year Treasuries \u2014 the crucial rate for mortgages and corporate bonds, and the one Trump\u2019s team says it wants to bring down. In fact, Bloomberg Economics analysis shows it\u2019s more likely to trend above that figure than below it. For the world\u2019s biggest economy, that means a wrenching transition.<\/p>\n\n\n\n Read it all<\/a>.<\/p> "Trump\u2019s Interest Rate Obstacle Is Bigger Than Powell" https:\/\/t.co\/CcNXpiVOuR<\/a> pic.twitter.com\/MLa29IeB2h<\/a><\/p>— Scott Lincicome (@scottlincicome) August 4, 2025<\/a><\/blockquote>