Trump Wants a 'Big Cut' From the Fed This Week

Group 1 - The Federal Reserve is expected to make a decision on interest rates this week, with President Trump advocating for a significant cut, although market expectations do not align with this [1][2] - Recent economic indicators, such as the Empire Manufacturing report showing a significant loss, suggest a slowing economy, which may provide the Fed with justification for a rate cut [2][4] - Inflation remains a concern, with current rates at 2.9% for headline and 3.1% for core CPI, both significantly above the Fed's 2% target [4][6] Group 2 - The housing market is a focal point for the potential impact of rate cuts, with President Trump suggesting that a cut could alleviate housing issues, although the correlation is uncertain [5][6] - The long end of the yield curve, which influences mortgage rates, may not respond as expected if inflation continues to rise, potentially limiting the effectiveness of rate cuts on housing affordability [6][7] - If mortgage rates decrease due to lower long-term rates, it could lead to increased demand in the housing market, subsequently driving up house prices [7][8]