Trump Accuses Powell of ‘Hurting the Housing Industry Badly’ Ahead of Jackson Hole Speech

President Donald Trump has lashed out at Federal Reserve Chair Jerome Powell over interest rates once again, calling the central banker a “disaster” ahead of a key speech later this week.

“Could somebody please inform Jerome ‘Too Late’ Powell that he is hurting the Housing Industry, very badly? People can’t get a Mortgage because of him,” Trump wrote on his Truth Social site late Tuesday. “There is no Inflation, and every sign is pointing to a major Rate Cut. “Too Late” is a disaster!”

The president’s latest attack comes as Powell is scheduled to deliver remarks at the Fed’s annual conference in Jackson Hole, WY, on Friday, a speech that will be closely watched for hints about the next Fed rate policy decision in September.

It will mark Powell’s final Jackson Hole appearance before his term as Fed chair ends next May, potentially offering him a platform to punch back at critics and set the tone for markets for the rest of 2025.

Despite mounting pressure from Trump and his allies to cut rates, Fed policymakers have kept their benchmark interest rate steady at a range of 4.25% to 4.5% since December in a bid to tamp down lingering inflation.

Mortgage rates have remained in the upper-6% range since then, adding to affordability challenges in the housing market and weighing heavily on home sales. While the Fed doesn’t set mortgage rates directly, expectations about future Fed policy can influence them.

“Mortgage rates are certainly holding the housing market back, as the interest payments on home purchases are often too much for many people to afford,” says Realtor.com® Senior Economist Joel Berner. “The Fed has a broader goal, though, of preventing runaway inflation.”

Trump, who promised much lower mortgage rates during his campaign, has for months demanded dramatic Fed rate cuts, at various points threatening to fire or sue Powell in his attempts to pressure the central bank to cut rates.

The Fed uses higher interest rates to help control inflation, and so far this year, the apparent strength of the job market gave the central bank no urgent reason to lower rates.

However, following a major downward revision to recent employment numbers in early August, a Fed rate cut at the next policy meeting in September began to feel increasingly likely.

“The Fed has exercised caution thus far, keeping a close eye on inflation readouts and postponing rate cuts, but the most recent employment data showed a significant slowdown that may prompt them to lower rates in their upcoming September meeting,” says Berner. “The rate reduction may not be major, but even a 25 basis point cut, which appears to be the most likely outcome, could make a difference in spurring on housing market activity.”

But mixed inflation data out last week complicated the case for a September cut. Although overall inflation held steady at 2.7%, as measured by the Consumer Price Index, core CPI jumped back above 3% and wholesale inflation ignited, making the biggest monthly gain in three years.

Data on Personal Consumption Expenditures due out next week could be the key to determining the Fed’s next rate move, as the core PCE measure of inflation is the Fed’s preferred metric for its 2% inflation target.

“Higher rates from the Fed keep the economy and price levels from overheating, which is especially of concern right now due to the broad swath of tariffs that the Trump administration has levied in recent months,” says Berner.

Meanwhile, Trump and his allies continue to dial up pressure on Fed policymakers to cut rates.

On Wednesday, Trump-appointed housing regulator Bill Pulte accused Federal Reserve Gov. Lisa Cook, who sits on the rate-decision committee, of lying on a mortgage application.

Pulte trumpeted the allegations on social media, publishing his letter to Attorney General Pam Bondi, recommending a criminal investigation of Cook.

Trump is also considering his short list of candidates to replace Powell when the Fed chair’s term expires next month.

According to Politico, the names under consideration include current Fed Vice Chairs Philip Jefferson and Michelle Bowman; Dallas Fed President Lorie Logan; former St. Louis Fed President Jim Bullard, and macro consultant Marc Sumerlin.

Meanwhile, as Powell takes center stage Friday in Jackson Hole for the last time, he’ll use his powerful platform to set the tone for his final months as Fed chair.

“In Powell’s Jackson Hole speech, we are looking for his interpretation of the recent inflation and employment figures,” says Berner.

“Inflation is higher than the target rate, but the unemployment rate is creeping up as well. How he balances these conflicting signals on where rates should be will be enlightening as to the Fed’s next move.”