Kevin Warsh, former governor of the U.S. Federal Reserve, was tapped by President Donald Trump to lead the Fed. (Tierney L. Cross/Bloomberg/Getty Images)
Trump has blamed Powell for not cutting rates more aggressively, even as he has repeatedly described the economy as strong. Historically, rate cuts have usually been reserved for times of economic weakness, not growth.
That disagreement over rates has real-world consequences. For many Americans, the effects are most visible in the housing and auto markets, two of the biggest expenses for most families. You’re not paying more because the home or car suddenly costs more. You’re paying more because the money to buy it does.
Those elevated borrowing costs are acting like a form of second inflation, pushing mortgages, car loans and credit card bills to levels that stretch household budgets thin. That’s why everyday life can still feel more expensive. Prices may not be climbing as quickly anymore, but the cost of paying for big purchases continues to rise.
THE PRICE OF BUILDING A HOME KEEPS CLIMBING — AND UNCERTAINTY ISN’T HELPING
President Donald Trump has begun a nationwide tour to address economic concerns. (Daniel Torok/Official White House Photo)
Democrats leaned heavily on affordability themes in state and local elections this fall, and it paid off.
In places like Virginia, New York and New Jersey, where voters have been squeezed by high housing costs and utility bills, Democratic candidates seized on Trump’s early economic moves, including his trade policy, to argue that his policies were worsening the affordability crisis rather than easing it.
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Democratic New York City mayor Zohran Mamdani placed affordability at the center of his campaign to helm America's largest city. (Andrew Lichtenstein/Corbis/Getty Images)
They promised to rein in energy costs, expand affordable housing and protect middle-class wages, a message that resonated with voters and, analysts say, reflects a broader trend. In an economy where many still feel stretched thin, the party that speaks most directly to people’s pocketbooks often wins.
The Fed’s decision about rate cuts will shape the economy’s trajectory and how affordable life feels for millions of Americans in the new year.
Amanda covers the intersection of business and politics for Fox News Digital.
https://www.foxnews.com/politics/federal-reserve-your-wallet-why-trumps-next-leader-matters