{"id":4725,"date":"2026-08-01T21:07:50","date_gmt":"2026-08-01T21:07:50","guid":{"rendered":"https:\/\/crosscountrymovingteams.com\/?p=4725"},"modified":"2026-08-01T21:07:50","modified_gmt":"2026-08-01T21:07:50","slug":"trump-promised-rocket-fuel-the-economy-got-a-big-yawn-housing-bill-and-higher-debt-than-defense-costs-instead","status":"publish","type":"post","link":"https:\/\/crosscountrymovingteams.com\/?p=4725","title":{"rendered":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead"},"content":{"rendered":"
\n

The president likes to vilify high rates as an affront to the size and strength of the U.S. economy, saying that America deserves the cheapest borrowing costs in the world. Trump for months publicly pressured the\u00a0Federal Reserve\u00a0to slash its benchmark rates, claiming it would be \u201cRocket Fuel!\u201d for growth and make housing more affordable.<\/p>\n

Read more A loneliness epidemic is creating a new type of third space: the one built around curiosity<\/a><\/p>\n

But since the war in Iran began at the end of February,\u00a0borrowing money has become more expensive, meaning fewer families can afford mortgages or auto loans. The government is getting squeezed, too \u2014 as it has spent $827 billion so far this fiscal year to service the national debt, more than it has devoted to national defense.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

The scope of the problem became clear this past week when\u00a0Kevin Warsh, the Fed\u2019s new chair picked by Trump, said in his second press conference on the job that\u00a0inflation continues to run hot\u00a0but offered no clear guidance on how to fix the problem.<\/p>\n

Interest rates are rising, even though Trump pledged they would fall<\/h4>\n

Rates on 30-year U.S. Treasury bonds hit their highest levels in nearly two decades, the exact opposite of what Trump had pledged to voters. The 10-year U.S. Treasury note saw its interest rate shoot up above 4.7% on Friday, surpassing what the president inherited when he returned to the White House last year.<\/p>\n

But Trump has largely ignored the jump in interest rates and has portrayed the economy as booming, even though the government recently reported that the\u00a0annual growth rate for the prior three months was a sluggish 1.5%.<\/p>\n

\u201cWe have the most successful environment that we\u2019ve ever had,\u201d Trump told his\u00a0Cabinet on Friday. \u201cThere\u2019s never been anything like it from the standpoint of investment into our country.\u201d<\/p>\n

\n
<\/div>\n<\/div>\n

Neither Trump nor his Treasury Secretary, Scott Bessent, discussed interest rates during the public portion of the meeting. But White House spokesman Kush Desai said the end of the Iran war would ultimately reduce energy costs and allow the Fed to reduce rates. \u201cOil prices \u2014 and thus overall inflation \u2014 will plummet again when President Trump forces a successful resolution with Iran, further paving the way for additional interest rate cuts by the Federal Reserve,\u201d Desai said.<\/p>\n

Higher interest rates are weighing on voters ahead of the midterm elections<\/h4>\n

The prospect of higher borrowing costs has become troublesome for Republicans in the November elections, as Trump\u2019s own policies helped drive the increase.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

His tariffs that began last year caused rates to jump so quickly that he\u00a0backed off and reformulated them. Trump has championed the\u00a0construction of data centers\u00a0for artificial intelligence, but the bonds financing those projects appear to have helped push up interest rates. And the war in Iran has fueled rising oil prices.<\/p>\n

\n
<\/div>\n<\/div>\n

Republicans had hoped to show clear progress on\u00a0affordability\u00a0to voters ahead of the midterms. Trump can point to a low unemployment rate and solid consumer spending as proof that the economy remains stable, yet there are\u00a0few signs that these arguments have connected\u00a0with the public.<\/p>\n

\n
<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n

One possible reason why Trump\u2019s economic messaging has struggled is that voters care more about whether their incomes are outpacing inflation, according to research released in June by Georgetown University\u2019s Juan Felipe Ria\u00f1o and the University of California, Berkeley\u2019s Francesco Trebbi.<\/p>\n

Read more After Trump threatens more strikes on Iran, Kuwait and Hormuz shipping face new attacks, while Israel hits Gaza despite Hamas pledge to disarm<\/a><\/p>\n

Trump and Republicans not only promised lower interest rates in the 2024 elections, but they indicated that prices could fall outright if their policies were in place. But over the last 12 months, inflation has nearly kept pace with hourly wage gains \u2014 and that understates the extent of the problem because debt service costs are not included in the consumer price index.<\/p>\n

\u201cIt cut against Democrats in 2024, and if prices and borrowing costs keep outrunning wages into the fall, the same logic points at Republicans now,\u201d Ria\u00f1o, the Georgetown University economist, told the AP.<\/p>\n

Housing affordability has been a sore point for voters<\/h4>\n

Earlier this year, the Trump administration directed Freddie Mac and Fannie Mae, the two mortgage firms under government conservatorship, to\u00a0buy at least $200 billion in home loans\u00a0to bring down mortgage rates.<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n
\n
<\/div>\n<\/div>\n

Earlier this year, Republicans had hoped to campaign on falling rates and a bipartisan bill to increase home construction to help defend their House and Senate majorities. One GOP lawmaker, who spoke on condition of anonymity to discuss strategy, said the hope was that Trump would sign the bill as mortgage rates fell below 6%, which could improve housing affordability and public sentiment toward the overall economy.<\/p>\n

However, Trump called the bill a \u201cbig yawn\u201d and\u00a0allowed it to become law without his signature. And the mortgage company Freddie Mac said Thursday that\u00a030-year rates were averaging 6.66%, essentially unchanged from a year ago.<\/p>\n

Markets don\u2019t expect interest rates to drop before the election<\/h4>\n

Warsh, the Fed chair since May, has said he has been content to let the financial markets do more to set the rates, rather than the central bank. Even though the Fed has held its benchmark rate steady this year, the markets on their own have chosen to charge a premium for holding U.S. government debt.<\/p>\n

\u201cMarkets reflect the higher inflation, policy uncertainty,\u201d said John Silvia, the CEO of Dynamic Economic Strategy. \u201cThey are the product of events.\u201d<\/p>\n

\n
<\/div>\n<\/div>\n

Warsh on Wednesday portrayed that as a positive, even if the result goes against what Trump expected from his new Fed chair.<\/p>\n

\u201cMarket participants are learning to play the ball, not the referee \u2014 and market prices will continue to respond in the direction and magnitude they see fit,\u201d Warsh said. \u201cThis is, in my view, a change for the better \u2014 and we are just getting started.\u201d<\/p>\n

\n
\n
<\/div>\n<\/div>\n<\/div>\n

But time might not be on Trump\u2019s side for fixing high interest rates. The next Fed meeting on rates will conclude on Sept. 16. Markets currently expect Fed officials to vote to raise rates in order to reduce inflationary pressures, according to CME FedWatch.<\/p>\n

Read more Spain puts up a 1,600-foot sea barrier between Ceuta and Morocco after EU states warn against \u2018uncontrolled mass crossings\u2019<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Trump promised rate cuts; instead 10-year Treasury yields topped 4.7% and 30-year mortgage rates sit at 6.66%.<\/p>\n","protected":false},"author":1,"featured_media":4724,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79],"tags":[],"class_list":["post-4725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-white-house"],"yoast_head":"\nTrump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/crosscountrymovingteams.com\/?p=4725\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team\" \/>\n<meta property=\"og:description\" content=\"Trump promised rate cuts; instead 10-year Treasury yields topped 4.7% and 30-year mortgage rates sit at 6.66%.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/crosscountrymovingteams.com\/?p=4725\" \/>\n<meta property=\"og:site_name\" content=\"Cross Country Moving Team\" \/>\n<meta property=\"article:published_time\" content=\"2026-08-01T21:07:50+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\"},\"headline\":\"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead\",\"datePublished\":\"2026-08-01T21:07:50+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725\"},\"wordCount\":1070,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/a6a7355d6548daddf315ffc5a5e215b0.webp\",\"articleSection\":[\"White House\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725\",\"name\":\"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/a6a7355d6548daddf315ffc5a5e215b0.webp\",\"datePublished\":\"2026-08-01T21:07:50+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#primaryimage\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/a6a7355d6548daddf315ffc5a5e215b0.webp\",\"contentUrl\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/wp-content\\\/uploads\\\/2026\\\/08\\\/a6a7355d6548daddf315ffc5a5e215b0.webp\",\"width\":1200,\"height\":600},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?p=4725#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#website\",\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/\",\"name\":\"Cross Country Moving Team\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/#\\\/schema\\\/person\\\/1b8121bfb9a1c55d1fff3fca675fceaa\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/crosscountrymovingteams.com\"],\"url\":\"https:\\\/\\\/crosscountrymovingteams.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/crosscountrymovingteams.com\/?p=4725","og_locale":"en_US","og_type":"article","og_title":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team","og_description":"Trump promised rate cuts; instead 10-year Treasury yields topped 4.7% and 30-year mortgage rates sit at 6.66%.","og_url":"https:\/\/crosscountrymovingteams.com\/?p=4725","og_site_name":"Cross Country Moving Team","article_published_time":"2026-08-01T21:07:50+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#article","isPartOf":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725"},"author":{"name":"admin","@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa"},"headline":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead","datePublished":"2026-08-01T21:07:50+00:00","mainEntityOfPage":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725"},"wordCount":1070,"commentCount":0,"image":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#primaryimage"},"thumbnailUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/a6a7355d6548daddf315ffc5a5e215b0.webp","articleSection":["White House"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/crosscountrymovingteams.com\/?p=4725#respond"]}]},{"@type":"WebPage","@id":"https:\/\/crosscountrymovingteams.com\/?p=4725","url":"https:\/\/crosscountrymovingteams.com\/?p=4725","name":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead - Cross Country Moving Team","isPartOf":{"@id":"https:\/\/crosscountrymovingteams.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#primaryimage"},"image":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#primaryimage"},"thumbnailUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/a6a7355d6548daddf315ffc5a5e215b0.webp","datePublished":"2026-08-01T21:07:50+00:00","author":{"@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa"},"breadcrumb":{"@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/crosscountrymovingteams.com\/?p=4725"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#primaryimage","url":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/a6a7355d6548daddf315ffc5a5e215b0.webp","contentUrl":"https:\/\/crosscountrymovingteams.com\/wp-content\/uploads\/2026\/08\/a6a7355d6548daddf315ffc5a5e215b0.webp","width":1200,"height":600},{"@type":"BreadcrumbList","@id":"https:\/\/crosscountrymovingteams.com\/?p=4725#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/crosscountrymovingteams.com\/"},{"@type":"ListItem","position":2,"name":"Trump promised \u2018rocket fuel.\u2019 The economy got a \u2018big yawn\u2019 housing bill and higher debt than defense costs instead"}]},{"@type":"WebSite","@id":"https:\/\/crosscountrymovingteams.com\/#website","url":"https:\/\/crosscountrymovingteams.com\/","name":"Cross Country Moving Team","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/crosscountrymovingteams.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/crosscountrymovingteams.com\/#\/schema\/person\/1b8121bfb9a1c55d1fff3fca675fceaa","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/crosscountrymovingteams.com"],"url":"https:\/\/crosscountrymovingteams.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts\/4725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4725"}],"version-history":[{"count":0,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/posts\/4725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=\/wp\/v2\/media\/4724"}],"wp:attachment":[{"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crosscountrymovingteams.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}