Trump is taking on the Fed, credit cards and mortgages. Will it improve affordability?
CBS News • • business
Key Points:
- The Trump administration is targeting three key components of the U.S. financial system—the Federal Reserve, credit card industry, and housing market—to lower borrowing costs amid inflation and affordability challenges. Proposed measures include banning institutional investors from buying single-family homes and capping credit card interest rates at 10% for one year.
- The Department of Justice has launched an investigation into Federal Reserve Chair Jerome Powell, which Powell and experts view as an attempt to undermine the Fed's independence in setting interest rates, potentially risking inflation and destabilizing the financial system.
- Experts warn that while these policies might reduce borrowing costs, they could backfire by reigniting inflation, restricting credit access, and distorting markets, with credit card rate caps potentially leading to reduced credit availability for
