The Federal Reserve resisted repeated calls by President Trump to cut rates.
The Federal Open Market Committee, the central bank’s policy making arm, voted unanimously to maintain the target range for the federal funds rate at 4.25%to 4.5%. In announcing its decision, the Committee not that while “swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace. The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated.”
The Committee also noted that “uncertainty about the economic outlook has diminished but remains elevated” but added that it remained “attentive to the risks to both sides of its dual mandate” and would continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.
Earlier in the day, President Trump predicted there would not be a rate cut when he spoke with reporters during a White House event.
“Maybe I should go to the Fed,” Trump said in a jokey manner. “Am I allowed to appointment myself at the Fed? I’d do a much better job than these people.”
Federal Housing Finance Agency Director Bill Pulte also chimed in prior to the rate announcement, calling on Fed Chairman Jerome Powell to resign if he refused to cut rates. Writing on X, Pulte said, “Fannie Mae and Freddie Mac can help so many more Americans if Chair Powell will just do his job and lower rates.”
Housing market is still correcting; don’t ruin it with lowering rates again.
BECAUSE THE PRICES NEED TO DROP
Prices are always consumer related, insufficient amount of housing, low foreclosure rates, high permit fees ( nearly 50% of the price of a house in parts of California as example) and existing homeowners with low 2.5 to 3% interest rates and no, a correction like 2008-2011 will not occur. Some stable, even stale housing markets exist, not enough to reduce prices. When an Administration, like the last one, causes high inflation and high interest rates, it hurts all homebuyers. No, the Fed is completely wrong, and reduced rates in a lower inflation time (currently just about 2.3%) is not the cause of inflation, only Government Spending is the root cause.
The housing market always corrects itself, no need to try to force market conditions. Housing prices are good, mortgage rates are better than they have been, people are
shopping for houses, this is great, considering the craziness of our current government.
Conditions are slowly changing for better for both buyer and seller.
Bill Pulte should resign. Following a shallow king instead of doing what’s best is a sure sign he should stay out of Washington.