The Fed Versus Trump: How Much Does it Matter for Interest Rates Overall?

This article is part of the series, “Left Hook Economics: The Dollars & Sense Policy Forum.”

Robert Pollin discusses why the Federal Reserve’s rate cut is likely to have little impact on mortgage interest rates. He provides historical data showing that “in using its standard tool of adjusting its policy interest rate up or down, the Fed simply does not have the power to control all other interest rates in financial markets.”

Pollin argues that in order to make home buying more affordable, we need to create an “alternative policy framework” that uses additional policy tools and includes better financial regulation.