CBS reports Trump on plans for the Fed; U.S. treasuries trim gains

CBS reports Trump on plans for the Fed; U.S. treasuries trim gains

President Donald Trump has continued his public criticism of the Federal Reserve, suggesting that the central bank's recent renovation project could be a fireable offense for Fed Chair Jerome Powell. The renovation, which has a revised cost of $2.5 billion, has been the subject of Trump's latest attacks, with the former president questioning the need for such an extensive project [1].

Trump's latest comments come amidst ongoing pressure on the Fed to lower interest rates. The president has repeatedly called for a 1% federal funds rate, arguing that such a move would stimulate economic growth and ease federal borrowing costs [2]. However, economists have warned that an aggressive cut in interest rates could destabilize the economy and reignite inflation [3].

Meanwhile, the 2-year Treasury yield rose to 3.956% today, marking the largest one-day gain since July 3, 2025. The yield has been on an upward trend, rising eight of the past 10 trading days. This increase in yields reflects investors' concerns about inflation and the potential for higher interest rates [4].

The Federal Reserve has maintained its independence, stating that it sets interest rates based on data and clear mandates, rather than political considerations. However, the ongoing political pressure from Trump has raised concerns about the Fed's independence [1, 2]. The next Federal Open Market Committee (FOMC) policy meeting is scheduled for July 30–31, with most analysts expecting the Fed to hold rates steady [2].

In a separate development, CBS reports that Trump has plans for the Federal Reserve, including demands for lower interest rates. The president has suggested that the Fed should cut rates by three points, arguing that such a move would save the country one trillion dollars a year [5].

References:
[1] https://www.cnn.com/2025/07/15/business/trump-says-fed-renovations-are-sort-of-a-fireable-offense
[2] https://www.ibtimes.com/trump-pushes-fed-slash-interest-rates-1-sparking-inflation-fears-3778443
[3] https://www.morningstar.com/news/dow-jones/202507157460/2-year-treasury-yield-rises-to-3956-data-talk
[4] https://www.foxbusiness.com/economy/trump-says-federal-reserve-should-lower-interest-rates-3-points
[5] https://www.investing.com/news/economy-news/explainerwhy-trumps-push-for-a-1-fed-policy-rate-could-spell-trouble-for-us-economy-4133297