US President Donald Trump harshly criticized the high interest rates and said that Fed Chairman Jerome Powell will soon leave his post.
The White House reportedly plans to visit the Fed headquarters on Thursday local time.
Trump stated that current interest rates are putting homebuyers in a difficult situation, saying, “Powell is keeping interest rates too high, and this is negatively impacting the housing market.” Stating that the economy is strong, Trump said, “Interest rates should remain at 1% or even be lowered by 3 percentage points or more.”
Trump also announced that eliminating the capital gains tax on home sales is being considered. The president’s comments are being interpreted as part of his ongoing criticism of Powell. Trump has repeatedly pressured Powell to cut interest rates and threatened to fire her throughout the year.
U.S. Treasury Secretary Benson also argued that the Fed should cut interest rates, saying, “Now is the time to cut rates.” Meanwhile, Deputy Treasury Secretary Bessant argued that the Fed’s “mission expansion” was causing high government spending.
The Trump administration has been making frequent allegations lately that the Fed spent $2.5 billion on its office building and that these cost overruns could be grounds for Powell’s dismissal.
In another noteworthy statement, Trump accused former president Barack Obama of “attempting a coup.” This statement is likely to further escalate political tensions.
*This is not investment advice.