Trump’s Fed Battle Risks Housing Market Stability
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BTCCSquare news:
Federal Reserve Chairman Jerome Powell maintains that the central bank bears no responsibility for the housing market's affordability crisis, attributing it instead to a chronic supply shortage. "Housing is a special case," Powell stated in July. "We don't set mortgage rates at the Fed." His prescription: stable inflation and maximum employment as the ultimate remedy.
President Trump's aggressive campaign against Powell has escalated, with recent moves to oust Federal Reserve governor Lisa Cook. A Trump-aligned Fed board might slash benchmark rates, but such actions risk triggering a loss of investor confidence—potentially sending mortgage rates spiraling upward rather than providing relief.
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