Agency: If Trump is elected, future interest rates may be higher than expected

Three weeks ago, the Fed cut interest rates by 50 basis points and hinted at further cuts, but in the meantime, investors pushed the 10-year Treasury yield to 4%, the highest level in two months. Why did the Fed cut interest rates while long-term interest rates rose? There are two reasons why interest rates in the next 10 years may be higher than in the last 10 years, and possibly much higher. One of the reasons is relatively mild. Inflation and economic growth will not be as low as before the epidemic. The second situation is not so good. The federal debt is on an unsustainable path and may become more dangerous after the election, especially if former President Trump wins and Republicans control Congress. Although both Harris and Trump have proposed big spending and tax cuts that will significantly increase the debt. But CRFB President Maya MacGuineas said: "Neither of them has any plan to solve the overall debt, but it is clear that Trump's agenda will be much worse than Harris's agenda." (Jin Shi)