President Donald Trump has been calling for lower interest rates from the Federal Reserve, but earlier this month he said that for the central to hold interest rates where they were in its last meeting “was the right thing to do." Instead, his goal now was to lower yields on the 10-year Treasury, reportedly through indirect methods.
“In my talks with [the president], he and I are focused on the 10-year Treasury [yield],” Treasury Secretary Scott Bessent said in a recent television interview.
The question has been how the administration could achieve this end. The Fed strongly influences short-term interest rates, similar to the shorter end of treasurys. But it’s the bond market that directs and sets yields at the longer end. Investors decide what they will pay for the 10-year Treasury Note and the yield moves inversely.
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