US President Donald Trump has criticized the high interest rates and said Fed Chairman Jerome Powell will soon leave his post.
The White House is scheduled to visit the Fed headquarters on Thursday local time.
Trump said current interest rates put home buyers in a difficult situation, saying, “Powell keeps interest rates high, which has negatively affected the housing market.” “Interest rates should remain at 1% or lower by more than three percentage points,” Trump said, stating that the economy is strong.
Trump also announced that elimination of capital gains tax on home sales is being considered. The president's comments are interpreted as part of his ongoing criticism of Powell. Trump repeatedly pressured Powell to cut interest rates and threatened to fire her throughout the year.
US Treasury Secretary Benson also argued that the Fed should cut interest rates, saying, “Now is the time to cut interest rates.” Meanwhile, Deputy Treasury Secretary Bessant argued that the Fed's “expansion of missions” is causing high government spending.
The Trump administration has recently filed frequent allegations that the Fed spent $2.5 billion on office buildings, and that these costs could be the basis for Powell's firing.
In another notable statement, Trump accused former President Barack Obama of “attempting a coup.” The statement could further heighten political tensions.
*This is not investment advice.
