Donald Trump Continues to Attack Fed Chairman Jerome Powell Over the Housing Market Crisis in America

After four days of suspension, President Donald Trump returns with harsh statements aimed at the Chairman of the Federal Reserve America (Fed) Jerome Powell. In a post on the social media platform Truth Social on Tuesday evening, Trump accused Powell of being the main reason for the weakening of the U.S. housing market. Trump wrote: "Can someone please inform Jerome 'Too Late' Powell that he is seriously destroying the housing industry? People cannot get mortgages because of him. There is no inflation, and all signs indicate that strong interest rate cuts are needed. 'Too Late' is a disaster!" These criticisms arise in the context of worsening real estate market data, while the confidence of builders is increasingly declining. The Builder's Confidence Has Fallen to Its Lowest Level Since 2022 According to the latest data, the number of housing starts in America last month increased by 5.2%, reaching an annual rate of 1.43 million units — the highest in 5 months. However, most of the growth came from multi-family housing projects, while the single-family home segment remained sluggish. The National Association of Home Builders (NAHB) / Wells Fargo Confidence Index fell to 32 in August, the lowest level since December 2022, contrary to economists' expectations that the index would rise to 34. Chairman of NAHB, Mr. Buddy Hughes, said: "The biggest issue right now is affordability. Buyers are waiting for mortgage rates to drop before they are ready to make a decision." He also emphasized that besides interest rates, the construction industry is facing difficulties due to land regulations and complex administrative procedures. In fact, more than 1/3 of contractors have been forced to reduce prices, with an average decrease of about 5%. At the same time, 66% of companies are offering promotional packages — the highest rate since the pandemic. However, the number of customers remains sparse, with many potential buyers delaying their purchases due to high interest rates. Regionally, confidence in the Northeast America has dropped to its lowest level since January 2023. In the South and Midwest, the index has remained virtually unchanged, while the Western region has seen slight but not significant improvement. Mortgage Interest Rates Decline, Pressure Weighs Heavily on Jerome Powell Last week, the fixed-rate mortgage interest for a 30-year term decreased to 6.58%, the lowest level since October last year, and down nearly 0.5 percentage points compared to the beginning of this year. However, this decrease is still not enough to stimulate demand. Homebuyers continue to wait, while builders are facing increasing difficulties. Mr. Robert Dietz, chief economist of NAHB, stated: "With the weakening real estate market and many other economic data, the Fed should soon return to a cycle of interest rate cuts. This will reduce the financial costs for housing construction and indirectly pull mortgage rates down." However, the Fed under Powell's leadership has not taken any action yet. Investors and real estate developers are awaiting the next monetary policy meeting, with high hopes that an interest rate cut will be implemented soon. Gloomy Prospects for Upcoming Housing Data This week, the U.S. Census Bureau is expected to release July data on the number of housing starts and new building permits. Experts predict that the figures will not be very bright. Previously, in June, the number of single-family housing starts fell to the lowest level in 11 months, while new building permits hit a low in more than two years. Observers believe that if Powell continues to delay interest rate cuts, the bleak state of the real estate market will persist, putting additional pressure on contractors, buyers, and the entire American economy. 👉 This article reflects the tension in monetary policy between President Trump and the Fed Chair, while also showing that the real estate market in America is in a difficult position, with the possibility of recovery still very fragile.