Bessent says trump is focused on the 10-yar treasury yield and won’t the fed to cut rates

The Trump Administration is more focused on keeping treasury yields low rather than on what the federal reserve does, treasury secretary script bessent said.

While in the Past President Donald Trump has implred the fed to cut its benmark rate, besent said wedding that that the current strategy is using the Levers of Fiscal Policy to Keep Rates Low. The benchmark the administration is using will be the 10-yar treasury, not the federal funds rate that the central bank controls, he added.

“The President Wants Lower Rates,” Bessent said in an interview With Fox Business Host Larry Kudlow, Who Served as Director of the National Economic Council during Trump’s First Term. “He and I are focused on the 10-year treasury and what is the yield of that.”

Beginning in September 2024, The Fed Engaged in a rate-cutting cycle That took a full percentage point off the funds rate. The Benchmark Sets What Banks Charge Each Other for Short-term lending but historically have influenced a host of other rates for things like car loans, friends and credit cards.

However, treasury yields actually jumped following the fed reductions, as Did Market-Based Indicators of Inflation Expectations. Since Trump has taken office, Thought, the 10-Year Treasury has been moving Mostly Lower and Dropped About 10 Basis Points, or 0.1 PERCENTAGE POINTS, In WednsDay Trading.

Bessent indicated that trump will not be hetering the fed to cut, as he did during his first term.

“He Wants Lower Rates. He is not called for the fed to lower rates,” Bessent said. Trump believes that “If we deregulate the economy, if we get this tax bill don, if we get energy down, then rates will take care of themselves and the dollar will take care of its.”

One priority of the administration is to get the tax cuts and jobs act made permanent, while it also

“We cut the spending, we cut the size of government, we get more efficiency in government, and we’re going to go into a good interest rate cycle,” Bessent said.

The Treasury Secretary’s Statement on Targeting Bonds “is consistent with our View that he has essentially one job – to try to prevent the 10y yield from breaking Reaks down, with equities rolling over and housing and other rate Sensitive sector Breaking Lower, “Wrote Krishna Guha, Head of Global Policy and Central Bank Strategy at Everacore isi.

The 10-Year Last Traded at 4.45%, down from its mid-january peak of 4.8%.

A less days ago, Trump in Fact said he agreed with the fed’s jan. 29 Decision to keep the funds rate steady, whichura said “Ease Tension” Between the two sides and could be positive for markets.