President Trump and Fed Chair Powell
President Trump and Fed Chair Powell, do not see eye to eye on what should happen to interest rates! President Trump would like to see short term rates drop, which, he believes would put pressure on long term (mortgage rates) to finally drop. Federal Reserve Chaiman Jerome Powell feels differently. Powell believes the economy is doing well and doesn’t feel the need to rock the boat, or, in his mind, create an inflationary market by lowering short term borrowing rates. President Trump thinks lowering rates will create an economic boom far outweighing inflationary concerns. The battle continues and we will have to see who wins out. One things for sure…the two titans will have until May 26 of next year to see if a middle ground can be found…otherwise, I am quite sure that President Trump will not renew Current Chairman Powell’s Federal Reserve Chairmanship! If you have questions about this subject or would like to discuss a purchase, refinance or even a Reverse Mortgage, call Michael Mitchell today at 707-337-5970, 530-406-2200 or 707-259-1117!