After a brief four-day pause, President Donald Trump resumed his attacks on Federal Reserve Chair Jerome Powell, accusing him of crippling the U.S. housing market.

On his Truth Social platform, Trump wrote:

“Can someone please tell Jerome ‘Too Late’ Powell that he is doing tremendous damage to the housing industry? People can’t get mortgages because of him. There is no inflation, and everything points to a major rate cut. ‘Too Late’ is a disaster!”

His comments come as fresh housing data highlights ongoing struggles: mortgage rates remain high, builder confidence is falling, and developers are increasingly forced to slash prices or offer incentives to attract buyers.

Builders Forced to Slash Prices Amid Weak Demand

In July, U.S. housing starts rose 5.2% to an annual pace of 1.43 million units, the highest in five months, driven largely by multifamily construction. But sentiment remains gloomy.

The NAHB/Wells Fargo Housing Market Index dropped to 32 in August, its lowest since December 2022. More than one-third of builders have cut prices, averaging a 5% reduction, while two-thirds are offering sales incentives—the highest since the pandemic.

“Affordability remains the biggest challenge, and buyers are waiting for mortgage rates to come down before making a move,” said NAHB Chairman Buddy Hughes. He also pointed to long-term obstacles like land-use regulations and construction-related red tape.

Mortgage Rates Dip, but Buyers Still Wait

The average 30-year fixed mortgage rate slipped to 6.58% last week, the lowest since October and nearly half a percentage point below the start of the year. Still, the drop has not revived demand. Buyers continue to sit on the sidelines while builders struggle with weak sales.

“To reinvigorate the housing market, the Fed needs to begin cutting the federal funds rate,” said NAHB Chief Economist Robert Dietz. “That would ease financing costs for builders and indirectly help mortgage rates.”

Powell, however, has yet to shift course. All eyes are now on the Fed’s upcoming policy meeting, where expectations for rate cuts are mounting.

Regional Disparities and Gloomy Outlook

In the Northeast, builder confidence sank to its lowest since January 2023. Sentiment in the South and Midwest was flat, while the West showed only a slight improvement. Traffic of prospective buyers, though slightly higher than in May, remains weak overall.

Upcoming data from the U.S. Census Bureau is unlikely to bring relief. In June, single-family housing starts fell to an 11-month low, while building permits dropped to their lowest level in more than two years. Economists told Reuters they expect July’s numbers to look just as bleak.

Political Pressure on Powell Intensifies

Trump is seizing on public frustration, squarely blaming Powell for delaying much-needed rate cuts. While economists argue that the housing market’s challenges are more complex, Trump insists the solution is simple: faster and deeper rate reductions.

The clash underscores rising tensions between the White House and the Fed, with America’s housing market emerging as the latest battleground in both economic and political debates.


#TRUMP , #Powell , #FederalReserve , #USPolitics , #Inflation

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“