G
rant Cardone, CEO of Cardone Capital and real estate executive, is placing the blame for the US housing market's challenges squarely on Federal Reserve Chairman Jerome Powell. According to Cardone, Powell's policies have caused more harm to the middle class and housing than any previous Fed chair.

    Cardone argues that the Fed's prolonged high interest rates are preventing Americans from buying homes and creating a nationwide housing imbalance. He criticized the Fed's decision in May to keep its benchmark interest rate between 4.25% and 4.5%, saying it continues to suppress homebuyer demand.

    The result, Cardone claims, is an elevated inventory level of 500,000 more homes than buyers. When rates come down, prices will also decrease due to increased supply in the market. Cardone disputes the common notion that interest rates directly control prices, instead suggesting that economic activity driven by lower borrowing costs drives the housing market and broader economy.

    Cardone believes affordable lending is essential for a meaningful recovery in the housing sector and calls for both buyers and investors to return to the market. Despite a drop in inflation, he criticizes Powell for not adjusting policy accordingly.

    President Donald Trump also weighed in on the Fed's approach, warning that its inaction could be disastrous. He suggested that the central bank should lower interest rates by a full point to stimulate economic growth.