Part 5/12:
Trump’s criticism here is validated: the rapid escalation of interest rates has been excessively aggressive and detrimental. Jerome Powell and the Fed initially mischaracterized inflation as temporary, and subsequent rate hikes have compounded the problem. The current interest rate environment is about two points higher than it should be, according to critics, and lowering rates could catalyze a significant boost in economic activity—particularly in the housing sector—by unfreezing the market and encouraging borrowing.