As the Federal Reserve revealed its latest rate decision Wednesday, a Trump administration senior counselor blasted the central bank for keeping the American Dream out of reach, as other experts reacted to the cut.
“We’re a hundred basis points, at least, over where we should be,” Trump senior counselor for trade and manufacturing Peter Navarro said on “Mornings with Maria” Wednesday. “That’s disequilibrium. It hurts our trade balance. It hurts everybody who’s trying to get a mortgage. It’s frozen up the housing market.”
“It should be 50 [basis points cut] today, and it should be another 50 at the next meeting. That’s where it should be,” he continued.
The Fed announced its first interest rate cut of the year Wednesday afternoon despite signs of tariffs pushing inflation higher amid rising concerns about the labor market. The 25 basis-point cut lowered the benchmark federal funds target range to 4% to 4.25%.
REAL ESTATE VETERAN WARNS ‘HOPELESSNESS’ IN HOUSING MARKET THREATENS THE AMERICAN DREAM
Markets had priced in a cut, with the CME FedWatch tool showing a 96% chance of a 25-basis-point cut and a 4% probability of a larger 50-basis-point cut.
At the same time, the Trump administration is reportedly weighing a declaration of a national housing emergency, which has been fueled by high rates, red tape and rising construction costs.
Other experts and politicians also called for a 50 basis point cut, like Senate Banking Committee Chair Tim Scott, R-S.C., and Miami-based Douglas Elliman agent and managing director Joe Azar.
“In the brokerage community, we would love to see a rate cut anywhere from a quarter to a half-point. Ideally, a half a point, and things have picked up over the last two weeks,” Azar told Fox News Digital. “I think you’ll see a jolt in the real estate market if we get a cut this afternoon.”
“If you get this cut today… for an end user, depending on the profile and the type of loan they’re taking, that is drastic because, overall, it’s going to help the buyer to save more money and their spending power,” Azar continued.
Buyers and sellers aren’t solely focused on rate cuts either, the Douglas Elliman broker argued: “A lot of my clients are also looking at the 10-year Treasury yield and also the five-year… what I think the Fed is trying to do is cut the short-term rates, which, what I will tell you, will affect the [adjustable-rate mortgage] loans.”
“I talked to [Fed Board governor Stephen Miran] about two really important things,” Sen. Scott said on a call with Fox News Digital. “The independence of the Fed, [and] sharing the president’s vision for what moves our economy forward.”
“The president has done such a good job of moving our country forward,” Scott added. “What else does he need? One big thing – I think a lower interest rate.”
Navarro called the Fed’s trajectory under Chairman Jerome Powell “a disaster,” arguing that Powell and Democrats are making “partisan decisions.”
“People talk about [how] an attack on Powell’s an attack on Fed independence. It’s not, it’s Fed incompetence,” he said.
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FOX Business’ Eric Revell and Preston Mizell contributed to this report.
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