Lates News

Fed whisperer Nick Timiraos: In the early days of Trump's second term, his economic advisers put forward a simple theory: as long as the bond market was shown that Washington was determined to close the massive deficit, long-term interest rates would naturally fall. Trump would not need to interfere with the Fed. Yet things did not go as hoped. The White House's theory was built on fiscal tightening that never materialized, and it ignored how many measures in Trump's own agenda would intensify the current upward pressure on prices, thereby pushing rates higher. Tariffs drove up the cost of imported goods, while the war with Iran caused oil and diesel prices to surge.