Trump Urges Lower Interest Rates as US Mortgage Costs Near Three-Year High

US President Donald Trump has urged the Federal Reserve to lower interest rates as mortgage costs in the United States approach their highest level in three years, adding pressure to an already contentious debate over monetary policy.

Treasury Secretary Scott Bessent attributed the recent rise in Treasury yields, which influence mortgage rates, to strong economic growth rather than inflation concerns, offering a more optimistic interpretation of the factors pushing borrowing costs higher.

Diverging outlooks

Trump, for his part, predicted a sharp fall in oil prices following the end of the ongoing war, suggesting that lower energy costs could help ease broader price pressures in the economy even as interest rates remain elevated.

Rising mortgage costs have drawn increasing attention as they directly affect housing affordability for American consumers, with higher borrowing costs typically dampening home-buying activity and putting pressure on the broader housing market.

The administration's public call for lower rates underscores the political sensitivity of monetary policy, even as the Federal Reserve maintains its independence in setting interest rate policy based on its own economic assessments.