Trump Faces Fresh Inflation Alert as Midterm Hurdles Grow
Economists say higher borrowing costs and inflation from tariffs and the Iran war are likely to blunt Trump’s deficit plans.
- Interest rates on 10-year U.S. Treasury notes are topping 4.44%, up from 3.95% in February, pushing mortgage rates to nine-month highs and complicating affordability for Americans.
- Kent Smetters, faculty director of the Penn Wharton Budget Model, estimates 60% of the yield increase stems from expectations of continued outsized borrowing, as investors increasingly view national debt as a vulnerability.
- Treasury Secretary Scott Bessent last week cited a report claiming $500 billion in annual fraudulent government spending could be eliminated, though economists remain skeptical of figures drawn from pandemic-era data.
- Democratic candidates in House and Senate races are using higher borrowing costs as a line of attack, with Democrat Jessica Killin in Colorado arguing persistent deficits make home and car purchases increasingly difficult.
- Glenn Hubbard, former chairman of the White House Council of Economic Advisers, warns the U.S. may lack borrowing capacity to combat economic crises as it did in 2008, noting "I don't think we have the space.
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40 Articles
The Star Democrat
The Latest: Trump faces new inflation warning from bond market, adding to midterm challenges
The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government, causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a…
Los Angeles Times
Independent EspañolThe world is getting tighter in lending money to the U.S. government, causing interest rates to rise in ways that exacerbate pressures on affordability, slow economic growth, and create a new risk for Republicans in the mid-term legislative elections in November.
Associated Press News
Trump is facing a new inflation warning from the bond market, adding to his midterm challenges
The world is getting more uptight about lending money to President Donald Trump’s government. The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government.
Trump faces pressure from rising US borrowing costs ahead of midterms
Rising borrowing costs could strain the economy, influencing voter sentiment and potentially reshaping fiscal strategies and crypto market dynamics. The post Trump faces pressure from rising US borrowing costs ahead of midterms appeared first on Crypto Briefing.
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