President Trump wants a 1% federal funds rate, but could his big feud with Jerome Powell

backfire and actually result in even higher mortgage rates in the next few years?

If you've been trying to sift through the drama and just want to know where rates could

be headed in 2026 and beyond, today we're digging into Trump v. The Fed. Hey, everyone, welcome to On the Market. I'm Dave Meyer. If you've been watching the news

recently, you probably noticed the feud between President Trump and the Fed chair, Jerome Powell,

starting to escalate. The basic points here are that Trump wants lower interest rates, but the Fed chair, Jerome Powell, starting to escalate. The basic points here are that Trump wants

lower interest rates, but the Fed hasn't cut rates since 2024 due to a strong labor market

and fears of inflation. Trump has even speculated because of this rift about firing Powell,

or at least replacing him when his term ends next year.

But this isn't just any old feud, regardless of how it ends.

Just the fact that it's going on could send shockwaves through the financial system and could

directly impact mortgage rates and potentially not in the way Trump and many real estate investors

want to see.

So this is a really important topic.

And today, we're going to explore what this fight is all about and how it could wind up impacting

you. I'm going to start with a very quick, like two-minute overview of what the Fed is and how it

works. And then we'll talk about interest rates of whether Trump can actually achieve the cuts

that he wants. So the Fed is actually

short for the Federal Reserve. It's the central bank of the United States. It was created way back

in 1913, and its most basic job is to stabilize the financial system and the economy, and it

primarily does this through controlling interest rates, which is known as

monetary policy. Now, this is different than fiscal policy that lies in the hands of Congress,

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