United States President Donald Trump has renewed his fierce criticism of Federal Reserve Chair Jerome Powell, accusing him of seriously damaging the country’s housing sector through his aggressive monetary policy stance.
Trump alleged that Powell’s interest rate strategy is throttling the American dream of home ownership, squeezing families already grappling with high living costs.
Trump said Powell’s prolonged high interest rates risk freezing mortgage markets and wrecking the confidence of builders and home buyers.
He added that Powell has already done unprecedented damage to the sector by pushing borrowing costs to levels that make homes unaffordable for millions of Americans.
The attack comes as mortgage rates remain elevated, hovering around recent decades highs, significantly slowing down home sales nationwide.
Trump claimed the Fed is out of touch with real life pressures facing citizens, blaming Powell for what he called a historic collapse in affordability in the once robust housing market.
The sharp rebuke is a continuation of years of animosity between Trump and Powell, whom he promoted to head the central bank during his presidency before turning into one of his harshest public critics.
Trump again suggested Powell should reverse course immediately to salvage what he called a crumbling housing industry. He argued the Fed must slash rates swiftly to revive buyer demand, or risk what he described as an unnecessary recession triggered by what he dismissed as Powell’s stubborn policy mistakes.
However despite Trump’s remarks, the Federal Reserve has signaled it remains focused on taming inflation and is unlikely to lower rates unless economic conditions weaken further.
Trump insisted America’s housing future is being sacrificed for what he termed Powell’s miscalculated fight against inflation.
With the presidential election campaign gathering speed, Trump’s renewed attacks signal the housing industry could become a central battlefield in his wider economic message.
Written By Ian Maleve
