Trump criticizes US rates as 30-year Treasury yield reaches 19-year high

President Trump again criticized Federal Reserve interest-rate policy, saying the United States should be paying rates "much lower" and calling its approximately 3.5% rate "unreasonable" compared with Switzerland's roughly 0.5% benchmark. He said lower rates would support economic growth and reduce financing pressure on the country's nearly $40 trillion debt, while praising Fed Chair Kevin Warsh as "doing a great job." The 30-year Treasury yield rose 6 basis points to 5.25% in one account and topped 5.3% in another, described respectively as its highest level since 2007 and since April 2007, or a 19-year high. The 10-year yield stood at about 4.73%. Investors weighed fiscal deficits, substantial corporate borrowing to finance artificial intelligence, inflation stemming from the war in Iran and expectations that long-term rates could remain elevated. The Treasury Department doubled planned long-term bond buybacks from $2 billion to $4 billion, covering 10- to 30-year maturities, and yields declined Wednesday after the announcement. Ed Yardeni said a 4% to 5% 10-year yield remained compatible with economic growth and corporate earnings, while Federal Reserve minutes indicated that rates might need to stay high or rise if inflation failed to cool.

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