The David Greene Show Mortgage Monday - Trump's Note to Powell | Episode 71
Trump's Note to Powell
- Trump wrote a handwritten note to Jerome Powell demanding lower rates, calling him 'too late'.
- The note mimicked a high school style, humorously likened to a junior high crush note.
Trump's Handwritten Note and the Tug of War Over Interest Rates
President Trump sent a handwritten note to Fed Chair Jerome Powell, pressing him to lower interest rates to 1.75% or less and criticizing him for being "too late" and costing the USA a fortune.
Christian Boucher explains that typically the Fed balances unemployment and inflation by adjusting rates. Currently, inflation is down, and unemployment is low, a scenario that usually calls for lowering rates. However, Powell is cautious due to uncertain future impacts from tariffs, limiting rate cuts despite the argument that immediate relief could save billions.
Trump's push to lower rates reflects a desire to stimulate the economy and reduce refinancing costs on nearly $9 trillion of debt this year. The episode highlights the tension between reacting to current economic conditions versus anticipating future risks, which influences mortgage and borrowing rates affecting everyday Americans.
Christian Boucher's Note Memories
- Christian Boucher jokes about sending handwritten notes in high school to ask girls out.
- This high school experience humorously parallels Trump's approach to Powell via notes.