President Donald Trump spent Wednesday at the World Economic Forum doing what he does best: making maximum noise about economic policy. This time, his targets were the Federal Reserve's interest rate stance, institutional landlords buying up single-family homes, and credit card companies charging what he called usurious rates. Oh, and he's planning to announce a new Fed Chair soon. Just another day in Trump's America.
The core argument? American families are getting squeezed from every direction—high mortgage rates, Wall Street firms outbidding them for homes, and credit card debt that makes saving for a down payment nearly impossible. Trump's solution involves pressuring the Fed, banning big investors from the housing market, and capping credit card interest rates at 10%.
The Fed Gets Another Earful
Trump didn't hold back on Federal Reserve Chair Jerome Powell, repeatedly calling him "too late" and confirming he'll name a replacement "in the not-too-distant future." According to Trump, the United States should be paying the lowest interest rates anywhere on the planet, and the Fed's supposedly tight policy is holding back economic momentum.
"We should be paying the lowest interest rate of any country in the world," Trump said.
He noted that everyone he's interviewed for the Fed Chair position sounds great, but added a telling caveat: "they change once they get the job." Translation: finding someone willing to deliver rate cuts on demand might be trickier than it sounds.
"We hope [the next chairman] does the right job," he said.
Trump also revealed that government-backed institutions have been directed to purchase up to $200 billion in mortgage-backed securities—a move designed to push down long-term borrowing costs. He pointed out that the average 30-year mortgage rate recently dipped below 6% for the first time in years, framing it as an early win for his approach.
Wall Street Landlords in the Penalty Box
Trump defended his recent executive order blocking large institutional investors from buying single-family homes, arguing these firms have fundamentally warped housing markets by outbidding regular buyers at scale.
"Homes are built for people, not for corporations," Trump said. "America will not become a nation of renters."
According to Trump, large firms have snapped up "hundreds of thousands" of homes, sometimes representing up to 10% of available properties in certain markets. He argued these investors enjoy tax advantages individual buyers don't get, giving them an unfair edge while driving up prices across the board.
Trump said he wants Congress to make the ban permanent, turning the executive order into lasting policy.
A 10% Cap on Credit Cards
Trump also took aim at credit card companies, urging lawmakers to cap interest rates at 10% for one year. His reasoning: crushing consumer debt—with rates hitting 28%, 30%, or even 32%—makes it nearly impossible for Americans to save enough for a down payment on a home.
"They charge Americans interest rates of 28%, 30%, 31%, 32%," Trump said. "What happened to usury?"
The idea is that easing the debt burden would free up cash flow for millions of households, giving them a shot at homeownership.
Walking the Housing Tightrope
Here's where things get interesting. Trump wants to make housing more affordable, but he's acutely aware that crashing home prices would devastate existing homeowners who've built wealth through rising property values.
"I am very protective of people that already own a house," Trump said, noting that home equity gains have created significant wealth for millions of families.
He acknowledged the tension directly: "I could crush the housing market very fast. But you would destroy a lot of people who already have houses." The implication is that any solution needs to help new buyers without tanking the asset values of current homeowners—a tricky balancing act.
Growth Without Inflation?
Trump also pushed back against the conventional Fed wisdom that strong economic growth automatically stokes inflation. He argued that "proper growth" actually helps contain price pressures rather than fueling them.
"Growth doesn't mean inflation," Trump said. "We've had tremendous growth with very low inflation."
His goal is to return to a market environment where strong economic data sends stocks higher instead of triggering rate-hike fears. "When we announce great numbers, the stock market should go up," Trump said. "That's the way it should be."
Markets Shrug, Gold Shines
U.S. Treasury markets steadied Wednesday after Tuesday's sharp selloff, with the 10-year yield holding around 4.27%. Trump's latest rate-cut calls didn't spark fresh volatility, suggesting investors have already factored in his views on monetary policy.
Long-duration bonds saw modest gains, with the iShares 20+ Year Treasury Bond ETF (TLT) rising 0.5% after dropping 1% the previous session.
Gold, meanwhile, continues its torrid run as a safe-haven play. Bullion surged 1.9% to $4,850 per ounce, while the SPDR Gold Shares (GLD) is up 11% year-to-date following a massive 64% surge in 2025.
