Trump Doesn’t Need the Fed To Fix Housing
President Donald Trump, eager for some good economic news to offset headlines about his tariff fallout, is joining the long list of presidents and other politicians pressuring the Federal Reserve to cut interest rates.
The president recently posted on Truth Social that Federal Reserve Chairman Jerome Powell is “always TOO LATE AND WRONG” and that his “termination cannot come fast enough.”
Exposing the dangers of the Federal Reserve was my main motivation for getting into politics. However, I do not agree that a president should fire a Federal Reserve chair because they refuse to follow orders to cut rates faster.
Interest rates are the price of money—and government price-setting never works, whether it’s done by central bankers or politicians. Artificially low interest rates are what caused the Great Depression, the housing bubble, the post-COVID surge in consumer prices, and every downturn that has occurred since Congress made the mistake of creating a central bank in 1913.
Forcing interest rates lower than their true market rate leads builders to start massive construction projects, companies to expand recklessly, and consumers to take on mortgages and debt they can’t really afford. In the short term, it looks like a boom—jobs g
Article from Reason.com
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