Trump Says Powell Is “Hurting” Housing Market, Renews Call for Big Fed Rate Cut

President Donald Trump accused Federal Reserve Chair Jerome Powell of “hurting” the U.S. housing market and once again demanded steep interest rate cuts.

Trump Renews Attack on Powell

On Tuesday, Trump wrote on Truth Social:

“Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the housing industry, very badly? People can’t get a mortgage because of him. There is no inflation, and every sign is pointing to a major rate cut.”

While inflation has eased from pandemic-era highs, recent data shows a mixed picture. Inflation still runs above the Fed’s official 2% target.

Jackson Hole Speech in Focus

Trump’s criticism comes just days before Powell’s speech at the Jackson Hole symposium on Friday. Investors are watching closely for signals about the Fed’s economic outlook and the potential timing of rate cuts.

The Fed’s next policy meeting is scheduled for September 16–17. Markets currently expect a 25-basis-point cut, with the possibility of another later this year. That is far less than the multiple cuts Trump has demanded.

Treasury Secretary Scott Bessent has supported the idea of a larger half-point cut in September.

Fed Policy and Trump’s Criticism

The U.S. central bank last cut rates in September of the previous year. It lowered its policy rate by 0.5 percentage points before the presidential election and trimmed another 0.5 points after Trump’s victory. Rates have since been held steady in the 4.25%–4.50% range.

Fed officials remain cautious, warning that Trump’s tariffs could reignite inflation. They also argue that the labor market remains strong enough to withstand current borrowing costs.

Inflation Data Shows Mixed Signals

The Consumer Price Index (CPI) rose 0.2% in July. The annual rate held at 2.7%, unchanged from June. Core CPI, which excludes food and energy, rose 3.1% year-on-year.

Economists estimate that the core PCE index rose 0.3% in July, pushing the annual rate to 3.0%. The PCE is the Fed’s preferred inflation measure.

While consumer prices rose moderately, producer and import prices jumped, raising concerns about future price pressures. At the same time, job growth has slowed, even though unemployment remains low at 4.2%.

Mortgage Rates Remain Elevated

Trump often targets Powell over the impact of high rates on U.S. borrowing costs and the housing market.

High mortgage rates remain a major obstacle for buyers. The average 30-year fixed mortgage rate has eased slightly in recent weeks but still sits near 6.7%, far above pre-pandemic levels.

Mortgage rates generally track the 10-year Treasury yield, which reflects investor expectations for growth and inflation. While Fed cuts can influence these yields, they do not always guarantee lower long-term mortgage rates. After last September’s rate cut, mortgage rates actually rose.

Housing Market Pressure

With home prices still elevated and housing supply tight, affordability remains a major issue. Trump argues that Powell’s policies are worsening these pressures and “hurting the housing industry very badly.”