Hassett says current interest payments are too high

The National Economic Council director's remark comes as long-dated Treasury yields pull back from multi-decade highs.

Kevin Hassett, director of the National Economic Council, said current interest payments are too high. He has made the point before, repeating calls since early September for lower rates alongside calls for the Federal Reserve to hold steady.

The comment lands a day after the 10-year Treasury yield fell to 5.24% and the two-year dropped to 4.79%, pulling back from a selloff that had pushed the 10-year above 5.2%. Gold, tracked by the GLD fund, rose 0.55% to $382.94 on Thursday as Treasury yields retreated, with Fed Vice Chair Jefferson's comments easing expectations of an October rate rise.

Traders have cut the odds of an October rate increase to 50-50 as of Thursday, with Fed officials Barkin, Collins and Schmid declining to guide on the month. Jefferson and Williams signaled no urgency for further hikes the same day, as jobless claims fell to their lowest since July. Fed Governor Lorie Logan has said more rate hikes are still needed as inflation lingers, and Logan, Barkin, Collins and Schmid continue to press the hawkish case.

Hassett's remark fits the administration's running push for lower rates rather than adding new pressure of its own. With the Fed's commentary still split between officials urging patience and those pressing for further tightening, the disagreement remains unresolved, and upcoming economic data, not the administration's messaging, is what will actually move long-dated Treasury yields from here.