Overview
- On Wednesday, President Trump publicly criticized the Federal Reserve for not cutting interest rates and said the U.S. should be paying much less for borrowing.
- Trump accused the Fed's board of political motives, praised his nominee Kevin Warsh as doing a "great job," and singled out Switzerland for its low rates while threatening to cut business ties.
- The Treasury announced it will at least double its bond repurchase program starting next month, specifically targeting securities with durations of 10 years or more to calm long-term yields.
- Long-term yields surged this week, with the 10-year near 4.7% and the 30-year reaching about 5.31%, and markets have lowered the odds of a September Fed rate hike to roughly 56% according to the Atlanta Fed tracker.
- July FOMC minutes showed many officials remain prepared to raise rates if inflation does not improve, a stance that keeps borrowing costs and the nearly $40 trillion debt burden central to future policy and fiscal costs.