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Crucial Interest Rate Jumps to Highest Level of Trump’s Second Term
The New York Times • • business
Key Points:
- The yield on the 10-year Treasury bond, a key economic indicator cited by President Trump’s administration, recently rose to 4.7 percent, its highest level during Trump’s second term.
- This increase from below 4 percent before the Iran war in late February complicates Trump’s goal of lowering costs across the economy by raising borrowing expenses.
- Higher Treasury yields have pushed mortgage rates up, with the average 30-year fixed-rate mortgage now at 6.58 percent, dampening hopes for a rebound in home sales.
- Economists warn that rising rates, combined with increased energy and food costs due to the war, may further suppress consumer spending and housing market activity.
