Trump Blames Powell for Housing Crisis as Markets Push for Fed Rate Cuts

President Trump is yet again targeting Federal Reserve Chair Jerome Powell, accusing him of stalling on rate cuts and hurting the housing market. With mortgages, interest rates, and even crypto caught in the middle, what is really at stake?

Let us find out.

Is Powell Hurting the Housing Market?

In a recent post on Truth Social, Trump slammed Powell, claiming that he is crushing the housing market. With inflation under control, he says every sign points to a major rate cut. “‘Too Late’ is a disaster,” he added.

James Fishback, CEO of Investment firm Azoria, also echoed the concerns about Fed policy, noting that last year, mortgage rates spiked because the market expected more rate cuts than the Fed delivered.

This time, he said, interest rate futures are pricing in almost no moves from the Fed.  With inflation at a four-year low, CPI six-month annualized at 1.9%, Fishback believes it’s time for a significant rate cut to bring down mortgage rates and provide relief to homeowners. 

He claims there should be a 100bps rate cut next month to make up for missed cuts earlier this year.

Will the Fed Cut Rates?

According to data from the CME Fed Watch Tool, there is now an 83% chance of a rate cut to 400–425 basis points. Just recently, the odds had climbed nearly 100%, with some traders even betting for a 50 bps cut. The drop shows rising uncertainty over mixed signals from the economy.

All Eyes on Powell’s Speech, FOMC Minutes

Trump’s criticisms come ahead of Fed Chair Powell’s speech at the Jackson Hole symposium, where investors will be watching closely for signals on the economy and potential rate cuts. The next Fed meeting is set for September 16-17, and while most expect a modest 0.25% reduction, Treasury Secretary Scott Bessent has been pushing for a 0.5 bps rate cut.

Still, some analysts caution that a September cut is not guaranteed. Inflation remains above the Fed’s 2% target, and tariff-driven price increases are adding new pressures.

The release of the FOMC minutes today will provide more detail on the Fed’s recent discussions on policy, inflation, and the economy.

Crypto Market Turns Bearish

The crypto market is down today as Bitcoin dipped below $114K and Ether dropped under $4,200. Major altcoins also saw declines, while crypto-linked stocks like MARA, COIN, and MSTR saw even bigger drops.

Data from Santiment shows that retail traders have turned sharply bearish after Bitcoin fell below $113K, marking the most negative sentiment since June. Historically, such extreme fear can signal a buying opportunity for patient traders, as markets often move opposite to the crowd.

Q4 Rally Ahead?

Not everyone is bearish. Investor Ted Pillows notes that most investors are trying to sell too early this cycle, which could make them miss the next big rally. He sees another leg up for Bitcoin in Q4, with rising global liquidity and expected Fed rate cuts pushing BTC toward $160K+.

With Powell’s speech and the FOMC minutes looming, crypto traders are on edge. The coming week could decide whether the market sparks a new rally or faces further losses.