Federal Reserve's high rates freeze American dream, say experts
- The Federal Reserve announced its first rate cut of the year amidst political and real estate criticism.
- Experts, including Peter Navarro and Tim Scott, called for a larger interest rate reduction to stimulate the housing market.
- High interest rates are seen as a barrier to achieving the American Dream, affecting mortgage accessibility and economic balance.
In the United States, on September 17, 2025, the Federal Reserve announced its latest rate decision amidst criticisms from politicians and real estate professionals. The central bank’s decision to cut interest rates for the first time in the year has sparked a significant response, particularly from Trump administration senior counselor Peter Navarro. Navarro argued that the Fed is maintaining interest rates at least a hundred basis points too high, impacting not only the housing market but also the overall economy by hindering mortgage access and trade balance. Several experts, including Senate Banking Committee Chair Tim Scott and Miami-based real estate agent Joe Azar, echoed Navarro’s sentiment, advocating for a more substantial cut of 50 basis points rather than the anticipated 25. They believe such a reduction would provide immediate relief to borrowers and stimulate the housing market, which has shown signs of struggle. Azar specifically mentioned that the real estate market would likely experience a significant boost with this change, underlining the urgency of acting to improve buyer spending power and accessibility to comprehensive mortgage options. Further dialogue on the independence of the Federal Reserve emerged from discussions, with Senator Scott highlighting the importance of aligning the Fed's policies with the current administration's economic vision. He praised the president's efforts in advancing the economy but lamented that the Fed's trajectory under Chairman Jerome Powell is perceived as detrimental due to partisan decisions. Navarro went as far as to label Powell’s management as “a disaster,” asserting that the critique surrounding Powell’s leadership is rooted in incompetence rather than an attack on the institution itself. Overall, the ongoing discourse around the Federal Reserve's decisions and their impact on the American housing market reflects a broader concern for economic stability and growth. As the Fed attempts to navigate these challenges, the implications of each rate adjustment will be closely monitored by both buyers in the real estate market and the policymakers aiming to foster an environment conducive to economic growth.