Powell is keeping rates too high and keeping SFR sales low

[Mark K]

Trump and a few others are using this boondoggle as an excuse to try to fire Powell since there are VERY limited circumstances under which he can be fired.

If rates are dropped, the housing market will take off and prices will climb to an even higher level of unaffordability. Leave them be for a while until the effects of tariffs are factored in. Maybe Trump wants interest rates lowered so people will have more $$ in their pocket that they'll need to pay higher prices as a result of the tariffs? Its all mostly madness.

 

[Carnivore]

The president can't just fire the fed chair. So it is very complex procedure. So complex that I had to use AI to get the procedure. So I used an extreme example
So the way to look at this is to always remember "We The People"
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So if the fed chair does something illegal who can terminate the fed chair?

Whoa, that’s a serious curveball—but it’s a great way to stress-test the system. If the Fed Chair were arrested for vehicular manslaughter, here’s how the fallout would likely unfold:


Immediate Legal Consequences

• The Chair would be criminally charged under state law, since vehicular manslaughter is typically prosecuted at the state level.
• Depending on the circumstances—recklessness, intoxication, or negligence—they could face felony charges, prison time, fines, and loss of driving privileges.

️ Impact on Federal Reserve Leadership

• The Chair would not be automatically removed from office. The Federal Reserve Act allows removal only “for cause”, which includes malfeasance in office, but not necessarily personal misconduct unless it affects their official duties.
• However, a felony conviction—especially one involving loss of life—could be interpreted as neglect of duty or malfeasance, triggering removal proceedings.

‍ Presidential Authority & Legal Ambiguity

• The President could attempt to remove the Chair, but only if they can prove the crime constitutes “cause.”
• If the Chair contests the removal, it could lead to a constitutional showdown in court, with the Supreme Court likely weighing in on whether the crime undermines their ability to serve.

Market Reaction & Institutional Stability

• Financial markets would likely react sharply, not just to the arrest but to the uncertainty around Fed leadership.
• The Fed might appoint an acting Chair from among the Governors to maintain stability while legal and political processes play out.

So while the Fed Chair isn’t above the law, removing them isn’t as simple as a pink slip. It would take a mix of legal justification, political will, and institutional coordination—and the ripple effects would be felt far beyond the courtroom.

 

[RCA]

And above all wait for summer to pass. Kids go back to school, now many families want to move during the school year? That woud be a safer approach - wait until September/October.

 

[Carnivore]

There is no cure for TDS. i,e 'If Trump walked on water, Some say it’s ‘because he can't swim.’

 

[J Grant]

There is no cure for TDS. i,e 'If Trump walked on water, Some say it’s ‘because he can't swim.’

And there's no cure for his cult base who call any criticism or observation about Trump, which is not fawning worship, "TDS" .

 

[Carnivore]

There are some metrics not being considered. If the feds are not lowering the rate because it's controlling inflation due to trumps possible Tariff 's uncertainty! Well a metric missing is the trade barriers also. Another metric is what were the tariffs before trump started playing with them? Those are not over yet.

 

[J Grant]

The tariffs have not hit yet. After they go into effect, it will take some months before the effect is seen, as the stores are now stocking products with pre-tariff prices. Trump knows that the tariffs will raise prices. He is trying to offset sticker shop by lowering interest rates. It will also juice the economy if home buying pick up, and then Trump can claim his tariffs helped the economy. But at some point, rates will have to rise again - Americans who have been buying the more expensive goods on credit are screwed, and those who overpaid for houses are underwater on mortgages are screwd.
Trump at that point will blame someone else - Obama! Biden !

 

[Carnivore]

Calling every rebuttal ‘cult behavior’ just dodges the actual point. If we’re talking Chapter 11, let’s talk business—not therapy.

 

[J Grant]

Calling every rebuttal ‘cult behavior’ just dodges the actual point. If we’re talking Chapter 11, let’s talk business—not therapy.

When a poster NEVER takes accountability for Trump's actions and excuses the worst of them with falsehoods and conspiracy theories, it is cult behavior and it is consistent with the most passionate of Trump's supporters. Even when Trump is enacting a clearly risky policy such as a budget bill projected to add trillions to the debt, they refuse to address it on its merits and instead deflect to Biden ( or another democrat )

 

[Carnivore]

WOW Interesting take. I’m more focused on how both parties perpetuate unsustainable debt through different flavors of legislative sleight-of-hand. Maybe cult behavior is assuming one team wears a halo.