Former U.S. President Donald Trump on Tuesday criticized Federal Reserve Chair Jerome Powell, accusing him of severely damaging the housing sector. In a post on Truth Social, Trump wrote, “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.”
Trump’s remarks come just ahead of Powell’s speech at the Jackson Hole central banking symposium on Friday, which investors will watch closely for cues on the Fed’s policy outlook. The Fed’s next policy meeting is scheduled for September 16–17.
While Trump has pushed for significant rate cuts, economists anticipate only a 25 basis point reduction in September, with possibly another later in the year. Trump’s former Treasury Secretary, Scott Bessent, supports a half-point cut.
The Fed last cut rates in September 2024, just before the election. Since then, rates have held steady between 4.25% and 4.50%. Inflation remains above the Fed’s 2% target, with July CPI at 2.7% and core CPI at 3.1%.
