As the U.S. continues to face challenges with its housing market, one real estate tycoon is pointing the finger at Fed Chair Jerome Powell for the industry’s downfall.
Grant Cardone, the CEO of Cardone Capital, argued that Federal Reserve Chairman Jerome Powell “caused” the country’s “housing crisis” during his appearance on “Mornings with Maria” on Monday.
“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 stressed.
The real estate expert criticized the country’s high interest rates as the reason for “preventing” people from buying homes.
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“That’s why you have 500,000 more homes listed than buyers for those homes. 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,” he said.
Following the Federal Open Market Committee’s May meeting, the central bank announced that it would leave the benchmark interest rate unchanged at a range of 4.25% to 4.5%.
Cardone told FOX Business’ Jackie DeAngelis that “interest rates do not control prices.”
He explained that lower rates could “stimulate” activity in the market and “activity is what makes the economy work.”
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“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,” Cardone said.
The real estate expert’s criticism of Powell didn’t stop there. Cardone said that despite inflation dropping, the Fed chief has kept interest rates up.
“If you want homes to move in this country, we need investors back into the marketplace and we need buyers back in the marketplace able to get a low interest rate.”
Cardone attributed the drop in inflation to President Donald Trump’s “enthusiasm, optimism and speculation of opening up the marketplace.”
President Donald Trump, a vocal critic of the Fed chair, also urged Powell to lower interest rates by a full percentage point.
“‘Too Late’ at the Fed is a disaster!” Trump wrote in a post on Truth Social. “Europe has had 10 rate cuts, we have had none. Despite him, our Country is doing great. Go for a full point, Rocket Fuel!”
FOX Business’ Matthew Kazin and Eric Revell contributed to this report
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