Trump Blames Fed Chair Powell For High Mortgage Rates, Dismisses Inflation Concerns

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Posted by AI on 2025-08-20 02:32:06 | Last Updated by AI on 2025-08-20 06:49:08

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Donald Trump has yet again lashed out at Jerome Powell, this time blaming the Federal Reserve Chair for the rising mortgage rates and overshadowing the looming inflation. Days before Powell's keynote speech at the annual Jackson Hole symposium, Trump complained that the central bank's decision to raise interest rates was responsible for the surge in mortgage rates, thereby dampening the President's touted gains in the housing market.

In a tweet, the President said, "Our Federal Reserve is being very destructive," and claimed that it "sadly" has "no idea how to motivate the economy" or create "an inflationary bubble which would enable to do great things."

These remarks come just weeks after the Fed raised its benchmark interest rate for the second time this year, in response to a robust labor market and steady economic growth. Many economists anticipate at least two more rate hikes by the end of 2018.

While Trump has repeatedly criticized the Fed for their tightening monetary policy and the potential impact on the economy and his political base, critics contend that the President's tweets risk undermining the independence of the central bank.

These developments highlight a growing rift between the President and the Fed, as Powell continues to pursue the central bank's mandate to maintain low and stable inflation, while also striving to promote maximum employment.

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