The Fed’s High-Stakes Power Struggle Affects Much More Than Mortgage Rates

On The Market

BiggerPockets

Investing, Education, Business, News

4.8 • 859 Ratings

🗓️ 23 April 2026

⏱️ 33 minutes

🔗️ Recording | iTunes | RSS

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Summary

Something is brewing at the Federal Reserve, and it’s starting to get ugly. For many months, President Trump has been pressuring the Fed to lower the federal funds rate and has since named a new Fed chair nominee to take the reins after Jerome Powell's term ends. But what seemed like a straightforward transition has quickly evolved into a nasty political showdown—a “standoff” between the Department of Justice (DOJ) and the Senate Banking Committee. The drama could drag out for months, with Powell’s investigation being prolonged and nominee Kevin Warsh’s confirmation being delayed. But behind all of it, there’s a much more serious issue being threatened: Fed independence. The Federal Reserve’s ability to act independently of political influences is crucial for creating monetary policy in the best long-term interest of the country, and it’s being jeopardized. For investors, this isn’t just political theater—it’s a signal. If markets lose faith in the Fed’s independence, the ripple effect could reshape not just interest rates, mortgage rates, and the housing market, but the entire U.S. economy. And it’s unfolding right now. In This Episode We Cover What happens when the Federal Reserve loses its “independence” Why the current Fed power struggle affects much more than mortgage rates The “battle” that is holding up new Fed chairman Kevin Warsh’s nomination Why the Federal Reserve’s hands are tied when it comes to cutting interest rates Behind the “drama” unfolding between the Senate Banking Committee and the DOJ And So Much More! Links from the Show Join the Future of Real Estate Investing with Fundrise Join BiggerPockets for FREE Join us at the BiggerPockets Conference October 2-4 in Orlando. Buy tickets Sign Up for the On the Market Newsletter Find Investor-Friendly Lenders Dave's BiggerPockets Profile BiggerPockets Real Estate 1266 – The War Has Changed the Housing Market | April 2026 Update Grab the Book, Recession-Proof Real Estate Investing Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and https://www.biggerpockets.com/blog/on-the-market-419. Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	There is a dramatic showdown brewing at the Federal Reserve that could change the course
0:04.9	for interest rates, for mortgage rates, and much of the entire economy over the next several
0:10.2	years, and it is playing out right now.
0:13.5	Back in March, President Trump nominated Kevin Warsh to be the next chairman of the Federal
0:18.1	Reserve when Jerome Powell's term is up on May 15th.
0:22.3	But the nomination isn't going as planned. And even if Warsh is confirmed, his job has gotten
0:29.4	a whole lot harder in just the last couple of weeks. The president has adamantly called
0:35.7	for lower rates, but inflation is going up.
0:39.8	So what's the path for the Fed?
0:41.6	Will we see a new Fed chair in the coming weeks?
0:44.3	Could the showdown between Powell and Trump really come to a head?
0:48.2	How will monetary policy impact the housing market through the end of the year?
0:52.3	How these events unfold at the Fed in the coming
0:54.9	weeks will impact almost every part of the investing world. So you better understand this and be
1:00.8	prepared for what happens from here. This and more on today's episode of On the Market.
1:16.0	Hey everyone. Welcome to On the Market. I'm Dave Meyer, Chief Investment Officer at Bigger Pockets.
1:22.5	Thanks for being here. The war in Iran is rightfully getting a lot of attention in the media right now.
1:28.1	And if you want my take on how it'll impact housing, check out an episode from last week that I put out that will go deep into that.
1:30.2	But for today, there's another major economic story,
1:34.4	or maybe even you could call it the soap opera really
1:36.7	unfolding right now, that is hugely important
1:39.7	to the economy, and that's what's happening
	...

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