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Mon, Jun 9, 2025, 2:01 AM 5 min read
President Trump is demanding for interest rates to be cut, but Federal Reserve Chairman Jerome Powell isn’t budging. Jobs in the private sector rose only by 37,000 in May 2025, which is the lowest job creation has been in over two years, CNBC reported and Trump wants the Fed to take action.
To help get Americans financial relief, Trump is urging Powell to cut rates and is publicly calling on him to do so. On his Truth Social account he wrote, “ADP NUMBER OUT!!! ‘Too Late’ Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES! [sic]”
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One of the biggest things people put on hold during economic uncertainty are houses. With higher interest rates, affording a home is more challenging.
“The longer rates stay elevated, the more financial pressure builds across the board,” said Shmuel Shayowitz, president and chief lending officer with Approved Funding. “We are already seeing it in housing, where affordability is at its lowest in generations.”
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Most people borrow money when purchasing a home and higher interest rates discourage potential many homebuyers
“High interest rates mean they can afford to buy less house because they’re paying more in interest,” Melanie Musson, finance expert with Clearsurance.com said. “Low interest rates mean they can buy a bigger house.”
Interest rates impact everything from credit cards to car loans and people tend to put big decisions on hold when rates are too high, which means people aren’t spending and the economy can slow down.
“High rates compress household budgets and delay critical financial decisions, such as buying a home or refinancing debt,” Shayowitz said. “If rates remain high for too long, the burden shifts from fighting inflation to slowing growth and limiting opportunities.
When launching a new business, it’s common practice to take out a loan to cover start up costs, but higher interests can deter someone from opening a new business.
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