Federal Reserve Speaker Nick Timiraos: At the beginning of Trump's second term, his economic advisors proposed a simple theory: as long as it was shown to the bond market that Washington was determined to close the huge deficit, long-term interest rates would naturally fall. Trump probably doesn't need to interfere with the Federal Reserve. However, it backfired. The White House's theory is based on fiscal austerity that has never been realized, and it ignores how many of the measures on Trump's own agenda will increase the current upward pressure on prices, which in turn will push up interest rates. Tariffs have driven up the cost of imported goods, while the war with Iran has caused oil and diesel prices to soar.

Federal Reserve Speaker Nick Timiraos: At the beginning of Trump's second term, his economic advisors proposed a simple theory: as long as it was shown to the bond market that Washington was determined to close the huge deficit, long-term interest rates would naturally fall. Trump probably doesn't need to interfere with the Federal Reserve. However, it backfired. The White House's theory is based on fiscal austerity that has never been realized, and it ignores how many of the measures on Trump's own agenda will increase the current upward pressure on prices, which in turn will push up interest rates. Tariffs have driven up the cost of imported goods, while the war with Iran has caused oil and diesel prices to soar.