In recent days, President Trump has continued to criticize Federal Reserve Chair Jerome Powell, blaming him for problems in the U.S. housing market.
Trump's Accusations Against Powell
In a post on Truth Social, Trump stated that Powell is "very badly hurting the Housing Industry." He also noted that "People can’t get a Mortgage because of him," expressing that immediate rate cuts are essential. "‘Too Late’ is a disaster!" emphasized Trump.
Current State of the Housing Market
Last month, housing starts in the U.S. increased by 5.2%, reaching an annual rate of 1.43 million homes. However, builder sentiment remains pessimistic, with the Housing Market Index dropping to 32 — the lowest since December 2022. NAHB chairman highlighted that affordability remains the biggest challenge for buyers awaiting reduced mortgage rates.
Future Market Outlook
The 30-year fixed mortgage rate fell to 6.58%, the lowest since October. However, this decline has not shifted the market, with builders continuing to face challenges. Economists anticipate that the Fed's upcoming policy decisions could be critical for improving market conditions.
Trump's criticism of the Fed Chair remains a relevant point amid the deteriorating state of the U.S. housing market. Expectations for changes in Fed monetary policy are continuing to rise.
