Why Trump economic advisers are more focused on Wall Street than on the Fed

Published On Feb 19, 2025, 4:00 AM

Kevin Hassett, National Economic Council Director under Trump, emphasized a focus on the 10-year Treasury yield over Federal Reserve interest rates, reflecting an aim to lower borrowing costs by addressing longer-term rates influenced by Wall Street. This strategy includes economic growth promotion and government spending cuts. Recent comments suggest efforts to contain inflation and manage the deficit to lower these yields, which could result in reduced borrowing costs for consumers and businesses. However, challenges remain due to variables like economic growth outlook, inflation, and supply of Treasuries.