In light of rising high interest rates, Donald Trump has voiced dissatisfaction with the current policies of the Federal Reserve (Fed) and indicated potential changes in its leadership.
Criticism of High Rates
Trump harshly criticized high interest rates, claiming that their level negatively impacts the housing market. He stated, "Powell is keeping interest rates too high, and this is negatively impacting the housing market." According to Trump, the economic conditions in the country allow for rates to be lowered to 1% or even by 3 percentage points.
Trump Administration Plans
Reports indicate that the Trump administration is considering eliminating the capital gains tax on home sales. Furthermore, a visit to the Fed headquarters is planned for Thursday, which may indicate active governmental actions in this area.
Political Tensions
Trump also accused former President Barack Obama of "attempting a coup," which could exacerbate political tensions in the country. Deputy Treasury Secretary Bessant stated that the Fed's "mission expansion" would lead to high government spending.
Trump's criticism of the Fed and high interest rates highlights the complex economic and political situation in the U.S., as well as upcoming changes in financial policy.
