The president argued that lower home prices would inhibit the growth of Americans’ wealth, and emphasized that lower interest rates would help homebuyers struggling with affordability.
President Trump told a Cabinet meeting Thursday that he wants to keep home prices rising so Americans can grow wealth through real estate, while lowering borrowing costs to expand access to homeownership.
The President emphasized the role of homeownership in wealth creation and warned against policies that could drive down home prices and impede recent wealth gains.
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“We’re going to keep raising prices. We’re not going to destroy the value of homes so people who aren’t working hard can afford them,” Trump said.
“I don’t want to see these values eroded,” he continued. “We have millions of people who own their homes. They’re wealthy for the first time in their lives because their homes are worth $500,000, $600,000, maybe even less, but they’re worth more than they’ve ever been worth. I don’t want to do anything to destroy that.”
The President also recognized that some Americans struggle with the costs of homeownership and emphasized that further lowering interest rates would make homeownership more accessible to these groups.
“The best thing that can happen for both groups is lower interest rates, and they are coming down,” Trump said. “And if we have a decent, intelligent person at the Fed, that person will work with us to lower interest rates. It covers all charges, it covers everything. Lower interest rates preserve values for people who own homes and make it possible for other people to buy homes.”
On Friday morning, the president announced that he would nominate Kevin M. Warsh to be the next Fed chairman after Chairman Jerome Powell’s term ends in May. Warsh will need Senate confirmation to take up the post.
During Warsh’s first tenure as Fed governor, he became known as a “hawk” when it came to lowering inflation by raising interest rates.
But since becoming a candidate for Fed chairman, Mr. Warsh has reversed his views on interest rates and inflation, and has publicly criticized the central bank, saying its reluctance to cut rates is “a sign against them.”
During Thursday’s Cabinet meeting, President Trump also discussed rebuilding efforts in Los Angeles’ Palisades neighborhood, which was damaged by wildfires a year ago. While the president praised his administration’s ability to quickly issue rebuilding permits to residents, he criticized what he said was a proposal to build low-income housing nearby, saying, “I’m not going to allow that.”
It’s unclear what proposals the president is referring to, but Los Angeles Mayor Karen Bass told ABC7, “The City of Los Angeles is not pushing for affordable housing or low-income housing. What we’re pushing for is rebuilding the Palisades.” Los Angeles City Councilmember Tracy Park’s office also told the outlet that it was not aware of any such project proposed in the area.
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