President Donald Trump Claims, "Interest Rates Are Too High, They're Not Appropriate," but the Bond Market Says He's Wrong
Soaring long-duration Treasury bond yields are sending an unmistakable message to President Trump, Wall Street, and investors.
Overview
Statistically, Wall Street has enjoyed having Donald Trump in the White House. Even though some of the stock market's highest-volatility events have occurred under President Trump (e.g., the COVID-19 crash in February-March 2020 and tariff tantrum in April 2025), the average annual return of the iconic Dow Jones Industrial Average (DJINDICES:^DJI), broad-based S&P 500 (SNPINDEX:^GSPC), and innovation-driven Nasdaq Composite (NASDAQINDEX:^IXIC) are higher under Trump than under most other presidents.
However, the bull market that's thrived under President Trump is at risk of being upended by the start of only the fourth rate-hiking cycle of the 21st century.
President Trump has repeatedly called on the Fed to slash interest rates. Image source: Official White House Photo by Andrea Hanks, courtesy of the National Archives.
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Originally published at www.fool.com.