Calls grow for rate cuts to revive property market
Real estate executive Grant Cardone has placed the blame for the ongoing US housing market challenges squarely on Federal Reserve chairman Jerome Powell, claiming that Powell’s policies have inflicted “more damage” on housing than any previous Fed chair.
In an interview on FOX Business’ Mornings with Maria, the Cardone Capital CEO argued that the Fed’s prolonged high interest rates have prevented Americans from purchasing homes and triggered a nationwide housing imbalance.
“He [Jerome Powell] has done more damage to the middle class and to housing in this country than any other single Fed or any decision that has ever been made out of Washington, D.C.,” Cardone said.
The Federal Reserve’s decision in May to hold its benchmark interest rate between 4.25% and 4.5% was met with sharp criticism from Cardone, who said the move continues to suppress homebuyer demand.
“That’s why you have 500,000 more homes listed than buyers for those homes,” he said, pointing to elevated inventory levels. “When the rates come down, prices will also come down with it because you’ll have more supply in the marketplace and supply is what controls prices.”
Cardone further contended that the common belief tying prices directly to interest rates is misguided. “Interest rates do not control prices,” he told FOX Business anchor Jackie DeAngelis. Instead, Cardone suggested that economic activity—spurred by lower borrowing costs—is what drives the housing market and broader economy.
“When you have a high supply but no demand because rates are too high, you don’t have buyers coming in to reach those homes [so] the prices stay up,” he said.
Cardone called for the return of both buyers and investors to the market, stating that affordable lending is essential for any meaningful recovery in the housing sector.
Despite a drop in inflation, Cardone criticized Powell for not adjusting policy accordingly. “If you want homes to move in this country, we need investors back into the marketplace and we need buyers back… able to get a low interest rate.”
President Donald Trump also weighed in on the Fed’s approach, posting on Truth Social that the central bank’s inaction could prove disastrous. “Too Late at the Fed is a disaster!… Go for a full point, Rocket Fuel!” Trump wrote.
What are your thoughts on the Fed’s decision to hold interest rates? Share your insights below.
