President Donald Trump is once again focusing on the actions of Federal Reserve Chair Jerome Powell, stating that his policies jeopardize the housing market. This article examines the key aspects of this critique and its potential economic implications.
Impact of the Fed on the Housing Market
Trump recently criticized Powell on Truth Social, claiming his actions harm the housing market. He emphasized that with inflation under control, the Fed should urgently implement a significant rate cut. James Fishback, CEO of Azoria Investment Firm, echoed concerns that Fed policies negatively impacted mortgage rates, which rose due to underestimating expected rate cuts.
Future Fed Rate Decisions
According to the CME Fed Watch Tool, the probability of a rate cut to 400–425 basis points is currently at 83%. The market is awaiting information from Powell’s speech at the Jackson Hole symposium. While many anticipate a modest 0.25% cut, some analysts, including Treasury Secretary Scott Bessent, argue for a more significant cut of 0.5%.
State of the Cryptocurrency Market
The cryptocurrency market is facing challenges with Bitcoin dropping below $114K and Ether falling below $4,200. According to Santiment, retail traders have begun to show pessimism, which could signal a buying opportunity for more patient investors, as historically sharp changes in sentiment often lead to market reversals.
Trump's criticism of Powell raises important questions about the current economic situation and approaches to monetary management. While some analysts predict improvement in the market, others remain cautious, awaiting further actions from the Fed.
