President Donald Trump on Wednesday intensified pressure on the Federal Reserve to lower interest rates while defending his administration's aggressive housing market policies, arguing that institutional investors and high borrowing costs have priced ordinary Americans out of homeownership.
Speaking at the World Economic Forum, Trump said the United States should be paying the lowest interest rates in the world and accused the Fed — under Chair Jerome Powell — of restraining economic momentum with overly tight policy.
"We should be paying the lowest interest rate of any country in the world," Trump said.
Trump Signals Fed Leadership Change
Trump sharply criticized Powell, repeatedly referring to him as "too late," and confirmed plans to announce a new Fed Chair "in the not-too-distant future."
"Everyone I interviewed is great," Trump said, adding that while candidates often sound aligned during interviews, "they change once they get the job."
"We hope [the next chairman] does the right job," he said.
Trump also said government-backed institutions have been instructed to purchase up to $200 billion in mortgage-backed securities to help bring down long-term borrowing costs.
He highlighted that the average 30-year mortgage rate recently fell below 6% for the first time in years.
Institutional Investors In The Crosshairs
Trump defended a recently signed executive order banning large institutional investors from purchasing single-family homes, arguing that Wall Street firms have distorted housing markets by outbidding individual buyers.
"Homes are built for people, not for corporations," Trump said. "America will not become a nation of renters."
He said large firms have purchased "hundreds of thousands" of homes, often accounting for up to 10% of properties on the market, driving up prices while benefiting from tax advantages unavailable to individual buyers.
Trump said he is calling on Congress to make the ban permanent.
Credit Card Rates, Housing Affordability
Trump also urged lawmakers to cap credit card interest rates at 10% for one year, arguing that surging consumer debt has become a major obstacle for Americans trying to save for a down payment.
"They charge Americans interest rates of 28%, 30%, 31%, 32%," Trump said. "What happened to usury?"
He argued that easing consumer debt burdens would help millions of households regain access to homeownership.
Protecting Existing Homeowners
While advocating lower interest rates, Trump stressed that his administration is trying to avoid policies that would undermine existing homeowners by triggering a housing market crash.
"I am very protective of people that already own a house," Trump said, noting that rising home values have created wealth for millions of families.
Trump argued that sharply forcing housing prices lower could backfire by eroding home equity and pushing leveraged homeowners into financial distress.
"I could crush the housing market very fast," he said. "But you would destroy a lot of people who already have houses."
Growth, Not Inflation, Trump Says
Trump rejected the idea that strong economic growth necessarily fuels inflation, arguing instead that "proper growth" helps contain price pressures.
"Growth doesn't mean inflation," Trump said. "We've had tremendous growth with very low inflation."
He said his goal is to return to a market environment where strong economic data lifts stocks rather than triggering fears of tighter monetary policy.
"When we announce great numbers, the stock market should go up," Trump said. "That's the way it should be."
Market Reactions
U.S. Treasury markets steadied Wednesday after Tuesday's sharp selloff, with the 10-year yield stabilizing around 4.27%.
Trump's renewed calls for lower interest rates failed to spark additional volatility, as investors appeared to have already priced in his views on monetary policy.
Long-duration bonds rebounded modestly, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rising 0.5% after sliding 1% in the previous session.
Gold, meanwhile, continued to attract safe-haven flows, extending its rally to fresh record highs. Bullion climbed 1.9% to $4,850 per ounce, while the SPDR Gold Shares (NYSE:GLD) is up 11% year-to-date following a 64% surge in 2025.
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