A WSJ analysis details how President Trump's second-term economic policies have driven inflation and long-term interest rates higher, contrary to the administration's initial expectations. The 10-year Treasury yield reached its highest since 2007, the Fed raised rates for the first time since 2023, and mortgage rates are above 7%. Tariffs, the Iran war, immigration restrictions, and persistent deficits are cited as key factors. Treasury Secretary Bessent's deficit-reduction efforts have faltered, and the government's interest payments have topped $1 trillion.
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