Kerui Group: Trump's Pressure to Lower Interest Rates May Increase Long-term Borrowing Costs

The Carlyle Group stated that the Trump administration's call for a significant rate cut by the Federal Reserve, coupled with the prospect of increased issuance of short-term debt in the United States, could disrupt the U.S. bond market and ultimately push up long-term borrowing costs. "Bond holders want to be confident that the Fed's job is to protect the real value of their principal. If they feel that the Fed is more focused on government financing, there may be bond sell-offs and higher term premiums," said Jason Thomas, Head of Global Research and Investment Strategy at Carlyle.