'Our interest rates should be the lowest' — Bessent says rising bond yields reflect strong growth; Trump announces automatic enrollment in children's investment accounts
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![US President Donald Trump arrives at Kelly Field airport in Texas on Wednesday (local time). [Reuters]](https://wimg.heraldcorp.com/news/cms/2026/10/08/rcv.YNA.20261008.PRU20261008078901009_P1.jpg)
US President Donald Trump on Wednesday (local time) renewed his pressure on the Federal Reserve to cut its benchmark interest rate after the 30-year mortgage rate surged to its highest level since his second term began.
Speaking at an announcement event at the White House, Trump was asked about the 30-year fixed mortgage rate hitting 7.49% — the highest since the start of his second administration. "I think the board would like to see the country not do well," he said.
He then added, "I think Kevin [Fed Chair Kevin Warsh] is great, but Kevin has one vote on a board made up of many people appointed by Obama and Biden and a few appointed by me."
Trump doubled down on the need for rate cuts, insisting the US economy remains on a strong footing.
"Our interest rates should be the lowest," he said. "We should have lower interest rates than any other country."
The Mortgage Bankers Association said that day the average rate on a 30-year fixed-rate mortgage stood at 7.49% for the week ending Friday — the highest level since November 2023.
Treasury Secretary Scott Bessent, who appeared alongside Trump at the event, attributed the rise in 10-year government bond yields — which influence mortgage rates — to economic strength. "Growth is solid," he said.
Bessent added that once the war with Iran ends, inflation will stabilize and both mortgage rates and 10-year government bond yields will come down. The 10-year Treasury yield hit 5.362% that morning, its highest since April 2002.
Trump also announced that day that the so-called "Trump Accounts" — stock investment accounts designed to build long-term assets for all Americans under 18 — would be opened automatically without requiring a separate application.
Trump said the accounts would allow children to watch their investments grow and learn the concept of owning a stake in a company, adding, "Long term, this is going to have a tremendous impact on socialism and communism."
The remark was widely interpreted as suggesting that fostering an awareness of free-market capitalism through early stock investment would help curb the spread of socialism and communism.
mokiya@heraldcorp.com
