HousingWire Daily Logan Mohtashami on why firing Powell won’t get Trump what he wants
Jul 17, 2025
Logan Mohtashami, a leading analyst known for his insights into the housing market, discusses the implications of President Trump’s thoughts on firing Fed Chair Jerome Powell. He explains why such a move wouldn’t lower mortgage rates and underscores the need for systemic change within the Federal Reserve. The conversation delves into the political motivations behind federal leadership dismissals, how they could destabilize the financial system, and the intricate connections between politics, inflation, and the housing market.
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Firing Powell Won't Lower Rates
- Firing Jerome Powell alone won't lower mortgage rates due to the Fed's committee structure.
- To achieve major rate cuts, all regional Fed presidents would need to be replaced.
Trump's Motivation to Fire Powell
- Trump deeply dislikes Powell and would fire him instantly if possible.
- The timing aligns with striving for lower mortgage rates and economic impacts for 2024 goals.
Fed Independence and Regional Presidents
- Firing multiple Fed regional presidents is unlikely and unprecedented in the U.S.
- The Fed's independence is designed to prevent political interference in rate decisions.