At its core, the Federal Reserve (or “the Fed”) adjusts interest rates to help manage the economy. When things are running hot—too much growth, too much spending—it raises rates to cool inflation, just like it did between 2022 and 2024. When the economy stalls, like during the pandemic, the Fed slashes rates and prints money to encourage people to spend, hire, and invest. This delicate balancing act can feel academic—until your mortgage rate jumps 3% or your 401(k) tanks.

Now, things are getting personal. Former President Donald Trump has long clashed with Fed Chair Jerome Powell. He’s called him “incompetent,” accused him of slowing economic growth, and hinted at replacing him if reelected in 2024—even though Powell’s term doesn’t end until 2026. Trump wants lower rates to stimulate growth, slash loan costs, and juice the markets. Powell? He’s playing defense against inflation and thinks cutting too soon could be a mistake.

This isn’t just a power struggle—it’s a high-stakes bet on where the economy is heading. Lower interest rates make it cheaper to borrow. That means more people can afford homes, business loans get cheaper, and credit card APRs might drop. That’s good for buyers, builders, and banks. But if you cut rates while the economy is still strong, you risk fanning the flames of inflation again—and leaving the Fed with fewer tools when the next recession hits.

There’s a real danger here. If rates are already low when a downturn arrives, the Fed has little room to maneuver. They’d have to print more money or experiment with negative interest rates—measures that come with serious risks. We’ve seen this play out in Japan and Sweden, where decades of ultra-low rates led to sluggish growth and distorted markets.

There’s also the inequality factor. Lower interest rates typically benefit those who already own assets—stocks, real estate, businesses—because those assets rise in value. If you don’t own much, you miss out. Meanwhile, inflation eats away at the value of cash, and everyday costs rise faster than wages. On the flip side, higher interest rates reward savers, reduce risky borrowing, and slow inflation—but they also raise the cost of living for those carrying debt.

That’s why understanding the Fed’s decisions is no longer optional. Financial education is essential in today’s economy. Knowing when and why rates move—and how it affects your mortgage, your investments, or your retirement—is the difference between reacting to headlines and building real wealth. Tools like Market Briefs, a free daily newsletter, help you keep up with what’s really going on in the economy, from interest rates to crypto trends.

History tells us a recession is always coming—maybe not this year, maybe not next, but eventually. There have been 16 in the last 100 years. If we don’t have room to cut rates next time, we’ll need other tools—and those tools can create side effects we’re still feeling from the last crisis.

So whether or not Trump replaces Powell, the fight over interest rates will shape the next chapter of the American economy. And understanding that battle might be the smartest investment you make.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Trump, Powell, and the Battle Over Interest Rates: What It Means for Your Money appeared first on ROI TV.

What’s Keeping Mortgage Rates So High?

Mortgage rates today are elevated, hovering well above the 5% mark we got used to a few years ago. The two biggest factors keeping them up? Time and recession.

Let’s start with inflation. Inflation has cooled from its recent peak, but it’s still higher than the Federal Reserve’s goal of 2%. Until we get closer to that target, the Fed is keeping interest rates higher for longer. That’s directly impacting mortgage rates, since they tend to move in sync with the Fed’s policies and inflation outlook.

Then there’s tariffs. If new or increased tariffs kick in—especially around the key date of July 8—they could add to inflation pressures by making imported goods more expensive. That, in turn, gives the Fed more reason to keep rates high to fight inflation.

And finally, who’s in charge matters. Jerome Powell, Chair of the Federal Reserve, has kept a firm stance on managing inflation, but his term ends in May 2026. If his replacement favors rate cuts, we could see a shift sooner—especially if economic data justifies it.

What Exactly Does the Federal Reserve Do?

Let’s clear up a common misconception. The Federal Reserve isn’t a typical government agency or bank. It doesn’t have vaults of cash or take deposits. Its main job? Managing interest rates and controlling the money supply.

It does this by influencing the federal funds rate, which is the rate banks charge each other to borrow money overnight. This trickles down into the retail interest rates we all care about—mortgages, auto loans, credit cards, and more.

Historically, the Fed slashes rates during recessions. We saw this in 2001 after the dot-com bust, in 2008 during the financial crisis, and in 2020 during the COVID-19 crash. Each time, lower rates encouraged people to borrow and spend, giving the economy a much-needed jolt.

Will a Recession Help Lower Rates?

Yes—eventually. Recessions almost always lead the Fed to cut rates, and that’s when we tend to see mortgage rates fall. The U.S. has had 16 recessions in the last 100 years—an average of more than one per decade. While we can’t predict exactly when the next one will hit, it’s a safe bet that it will happen. And when it does, expect mortgage rates to follow suit—though don’t expect them to fall to zero, even if the Fed funds rate does.

What’s the Fed Watching Right Now?

The Fed watches a lot of things, but the big three are:

1. Inflation – Still too high.
2. Jobs – Despite public frustration, unemployment is statistically low.
3. Tariffs and global trade – Could worsen inflation.

So right now, the Fed sees a relatively strong job market and sticky inflation, which means it’s not in a rush to cut rates. But that could change quickly if economic conditions shift.

What Should You Do in the Meantime?

Here’s the truth: the system isn’t built to benefit the financially uneducated. Institutions profit when people rack up debt, especially during low-rate periods. But you don’t have to play that game.

Instead:

• Buy a home you can afford now, not one you hope to refinance later.
• Don’t assume a rate drop is around the corner—plan for today, not someday.
• Treat your home as a liability, not an investment, and avoid over-leveraging your future.

Want to Stay Smart About Your Money?

If you want to keep your finger on the pulse of the economy, Market Briefs is a free daily newsletter that breaks down the housing market, stocks, crypto, and more in easy-to-read, no-fluff emails. You’ll also get access to a free investing masterclass and insights to help you find opportunities in any market—bull, bear, or stuck-in-the-middle.

Mortgage rates will go down eventually—but whether that happens in six months or three years depends on forces most of us can’t control. What you can control is your financial literacy, your debt, and the decisions you make today.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Will Mortgage Rates Ever Drop Again? Here’s What You Need to Know appeared first on ROI TV.

Why is this happening now?

Homes are sitting on the market longer. Sellers are listing more frequently. And buyers? Many are waiting on the sidelines, hesitant due to elevated mortgage rates and broader economic uncertainty. In real estate terms, the market is “softening” not collapsing. That means slower price growth, longer selling timelines, and reduced buyer urgency.

A Historical Perspective on Prices and Payments

Back in 2020, the median home price in the U.S. was $329,000, and mortgage rates averaged a historically low 3.1%. Buyers who put down 20% enjoyed monthly payments around $1,123. Fast forward to 2023, and things looked very different: the median price jumped to $492,300, mortgage rates surged to 6.81%, and monthly payments skyrocketed to $2,570 more than double what they were just three years earlier.

In 2025, there’s been some relief. The median home price has dipped to $416,900, and while rates remain high at 6.84%, the average monthly payment is now $2,183. That’s a 15% drop from 2023 levels but still a long way from the affordability of 2020.

Supply Is Up, But Demand Isn’t Following

The classic economic rule of supply and demand explains a lot here. When supply outpaces demand, prices stabilize or even fall. And right now, supply is rising. More homes are being listed. Listings are sitting longer. Foreclosures are increasing.

But demand isn’t keeping up. Economic uncertainty, particularly around tariffs and a sluggish Q1 2025 economy, is discouraging potential buyers. Some who bought recently are facing financial strain and trying to sell often for less than they paid, especially once realtor fees are factored in.

Will Lower Interest Rates Bring Buyers Back?

There’s pressure on the Federal Reserve from government leaders, including President Trump, to cut interest rates. If that happens, mortgage rates could fall and that could reheat buyer interest. But for now, the Fed hasn’t made any promises. Buyers remain cautious, and sellers may need to reset their expectations.

Government incentives could also play a role. New grant programs or tax breaks might lure hesitant buyers back into the market, but so far, such efforts remain speculative.

What to Watch Moving Forward

To get a pulse on where the housing market is headed, keep an eye on:

• New home listings
• Average time homes stay on the market
• Foreclosure rates
• New housing construction
• Broader economic performance
• Federal Reserve decisions

If supply continues to climb and demand stays stagnant, prices may keep softening. But any major economic shift especially a drop in interest rates could flip the script quickly.

Bottom Line

We’re not witnessing a housing bust. We’re seeing a market correction. After years of unsustainable growth, home prices are slowing, giving buyers a fighting chance and sellers a reality check. Whether you’re looking to buy, sell, or just stay informed, the months ahead will offer valuable insights into the future of real estate in America.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Is the U.S. Housing Market Finally Cooling Off? appeared first on ROI TV.