US President Donald Trump has converted his disapproval of Federal Reserve Chair Jerome Powell, criticizing him of harming the US housing market by keeping interest rates high. In a Truth Social post on Tuesday, Trump wrote, “People can’t get a Mortgage because of him. There is no Inflation, and every sign is pointing to a major Rate Cut.” Trump has constantly called for aggressive rate cuts to the federal funds rate, but the Fed has seized rates stable throughout 2025.
Trump’s remarks come just days before Powell is set to speak at the yearly Jackson Hole Economic Symposium, a high-profile event viewed closely by global investors. Powell’s comments on Friday may give clues about the Fed’s way ahead of its next policy meeting on September 16-17.
Fed signals caution as inflation data sends mixed messages
In spite of falling from pandemic-era peaks, inflation is still above the Fed’s 2% target. The Consumer Price Index (CPI) rose 0.2% in July, with annual inflation holding stable at 2.7%. Core CPI, without food and energy, mounted 3.1% YoY. Also, core Personal Consumption Expenditures (PCE) inflation, a key Fed metric, expected to rose 3% over the same period, based on preliminary evaluations.
Producer and import prices also increased, signalling that future consumer price hikes may be on its way. In the meantime, labor market data points are still, although the unemployment rate is as low at 4.2%.
Housing pain persists as mortgage rates stay elevated
Mortgage rates continue to be near 6.7% for a 30-year fixed loan, well above pre-pandemic levels. Trump claims Powell’s rate policy is costing potential homebuyers out of the market, with variably more housing costs combined by tight supply. Nevertheless, Fed officials have shown concerns that premature rate cuts could re-ignite inflation, mostly given uncertainty around tariffs and income trends.
Also Read: Putin-Trump Meeting Shifts Global Oil Outlook: Will Russian Supply Stay Stable?
Ankur Mishra is a journalist who covers an extensive range of news, from business, stock markets, IPOs to geopolitics, world affairs, international crises, and general news. With over a decade of experience in the business domain, Ankur has been associated with some of the reputed media brands. Through a sharp eye on global marketplaces along with deep insights and analysis of business strategies, Ankur brings simplicity to the complex economic matrix to decode market trends and empower people.
He is committed to entrenched data, facts, research, solutions, and a dedication to value-based journalism. He has covered trade tariff wars, international alliances, corporate policies, government initiatives, regulatory developments, along with micro- and macroeconomic shifts impacting global fiscal dynamics.
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