If you’re frustrated with being unable to buy a home today, you’re not alone. According to the Federal Reserve Bank of Atlanta, homeownership affordability has been near an all-time low since 2023. The deadly combination of both home prices and interest rates skyrocketing broke the housing market, but simply lowering interest rates today won’t fix it.

To understand why, it’s important to know what caused this housing affordability crisis. Over the last several years, the federal government spent trillions of dollars it didn’t have in the world’s largest-ever borrowing binge. The money came from the Federal Reserve, which created those trillions of dollars out of nothing, depressing interest rates.

The real solution is not to manipulate rates lower and spawn further inflation, but to get government out of the way so interest rates can come down naturally.

The predictable result was a rapid devaluation of the dollar, manifesting as 40-year-high inflation, followed by the fastest rise in interest rates in just as long to cool off the inflation.

Rates aren’t the problem

Not only did home prices become stratospherically high relative to incomes, but financing costs became prohibitively expensive. Consequently, during the four years of the Biden administration, the monthly mortgage payment doubled on a median-priced home.

For the housing market, this was a one-two punch that cratered affordability and consigned millions of Americans to renting for the foreseeable future.

The Fed’s artificially low interest rates helped cause the problem in the first place. Home prices rose not only because the dollar lost value (taking more dollars to buy the same home), but also because lower interest rates meant potential home buyers could borrow more and bid up the price of homes.

What’s most important to someone when considering buying a home is not the home’s price but the monthly mortgage payment. While the payment is clearly dependent on the whole price, interest rates are also a major factor. When those rates fell below 3%, people were willing to spend much more on the same home because the monthly payment didn’t change much.

As the months passed, however, and the bidding wars continued, prices just kept rising. Once interest rates returned to more normal levels, everything fell apart as monthly mortgage payments exploded. It now takes over two-thirds of the median household’s take-home pay to afford a median-priced home.

Historically, when interest rates rise, home prices fall, but that didn’t happen this time. So many people locked in home loans at interest rates below 4% — or even below 3% — that they can’t sell their homes today, because doing so would mean losing that interest rate and getting a new mortgage at 7%, 8%, or 9%.

The only way to make the math work is if homeowners sell at a huge premium, giving a massive down payment on their next home, minimizing the amount borrowed at a higher rate, and therefore preventing their monthly payment from skyrocketing. The large and fast increases in interest rates pushed home prices even higher instead of lower.

Get government out of the way

The temptation today is for the Fed to simply lower the federal funds rate (its benchmark interest rate), under the assumption that such a move will push down interest rates throughout the economy, including mortgages. Sadly, instead of fixing the broken housing market, it would likely have the opposite effect.

Last autumn, in a move that could only be described as blatant election interference, the federal funds rate was reduced when there was no empirical justification for doing so. But the move buoyed stock prices. Market participants saw through the charade and realized the artificially low rates would ultimately lead to more inflation, which prompted private market interest rates to rise.

Photo by e-crow via Getty Images

Lenders don’t like inflation because it reduces the value of the money being repaid in the future. To compensate, creditors demand a higher rate of return. That’s why the yield on Treasury debt at the end of last year jumped 100 basis points after the federal funds rate fell 100 basis points, demonstrating the Sisyphean nature of the problem.

Additionally, interest rates and home prices have recoupled. If interest rates fall one or even two percentage points, that will again prompt potential home buyers to borrow more, thereby bidding up home prices again. Unless rates drop substantially more, existing homeowners will remain trapped by the golden handcuffs of their 2% or 3% interest rates.

The real solution is not to manipulate rates lower and spawn further inflation, but to get government out of the way so those rates can come down naturally. If the government spent much less, then there would be less demand for borrowed money. Reducing demand in turn reduces the price, and the price for borrowed money is the interest rate.

Profligate government spending broke the housing market. Only fiscal restraint at the federal level will fix the problem.

Jerome Powell’s luxury Fed is failing the American people

Rumors have picked up in recent weeks about Federal Reserve Chairman Jerome Powell’s future. Some expect President Trump to fire him. Others think Powell may step down on his own. Either way, the speculation points to a larger problem: Powell and the Fed have lost touch with the realities facing ordinary Americans.

Powell’s refusal to lower interest rates, despite direct pressure from the White House, is just the start. The deeper issue is the Fed’s glaring hypocrisy. It preaches fiscal restraint while spending lavishly — most notably on a $2.5 billion office renovation.

The Fed has become increasingly disconnected from the needs of the American people.

This kind of waste raises serious questions about the Fed’s credibility. How can the central bank warn the public about debt and overspending while burning billions on luxury upgrades?

The Federal Reserve has spent years warning about the dangers of excessive government debt. It insists higher interest rates are necessary to curb inflation and keep the economy from overheating. The message is simple: Control spending or risk a financial crisis.

But the Fed doesn’t follow its own advice.

While millions of Americans struggle with high prices, ballooning mortgages, and record credit card debt, the Fed overspent $700 million on a top-to-bottom renovation of its D.C. headquarters. The upgrades include a rooftop garden and decorative water features.

Yes, water features.

The hypocrisy is hard to ignore. The same institution that lectures the public on fiscal discipline is more than happy to greenlight luxury amenities for itself. If the Fed believed a word of its own rhetoric, it would lead by example.

Instead, it spends like a bloated federal agency while scolding taxpayers for doing the same. Its calls for restraint ring hollow — and Americans know it.

Failure to lead

The Fed’s primary role is to ensure the stability of the financial system and provide guidance to the U.S. economy. Yet, it has shown no willingness to practice the same fiscal restraint it urges on the rest of us.

If the Fed were truly concerned about the nation’s financial health, it would have used this money for something more productive — like investing in programs to reduce debt, support economic growth, or ease the burden on taxpayers.

Vought slams Fed Chair Powell over 'grossly mismanaged' luxury renovations. Anna Moneymaker / Staff via Getty Images

Time for accountability

Instead, the Federal Reserve has chosen to prioritize its own image and comfort. The $2.5 billion renovation comes at a time when the economy is struggling to recover from the pandemic's effects, high inflation, and rising debt. While the Fed continues to push for higher interest rates, making borrowing more expensive for businesses and consumers, it’s simultaneously indulging in luxuries that most Americans would never dream of.

Jerome Powell’s refusal to lower interest rates is just one symptom of a larger issue within the Fed. The institution has become increasingly disconnected from the needs of the American people. The American people need a Federal Reserve that leads by example — one that practices the fiscal responsibility it preaches to others.

If the Fed cannot demonstrate fiscal discipline, it must be held accountable. That starts at the top. Powell needs to go.

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Vought slams Fed Chair Powell over 'grossly mismanaged' luxury renovations

In his latest crusade to rein in spending, Office of Management and Budget Director Russell Vought has set his sights on the Federal Reserve.

Vought called out Chairman Jerome Powell for greenlighting luxury renovations to the Fed's Washington, D.C., headquarters that exceeded the original budget by roughly $700 million, totaling roughly $2.5 billion. The renovations include a rooftop terrace with gardens, VIP dining rooms and elevators, "premium" marble, and water features.

"The president is extremely troubled by your management of the Federal Reserve System," Vought said in a statement. "Instead of attempting to right the Fed's fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington, D.C., headquarters."

"The cost per square foot is $1,923 — double the cost for renovating an ordinary historic federal building," Vought added. "The Palace of Versailles would have cost $3 billion in today's dollars!"

'Chairman Jerome Powell has grossly mismanaged the Fed.'

Photo by Win McNamee/Getty Images

Vought also pointed to Powell's congressional testimony in June, where he denied that the lavish renovations were taking place. Vought said Powell's testimony "raises serious questions" about the renovation's compliance with the National Capital Planning Act, which would require the project to be approved by the National Capital Planning Commission.

"Although minor deviations from approved plans may be inevitable, your testimony appears to reveal that the project is out of compliance with the approved plan with regard to the major design elements," Vought said. "This would bring the project outside of the NCPC's approval and thus in violation of the NCPA, and require the Fed to immediately halt construction and obtain a new approval from the NCPC before proceeding any further."

Photo by Chip Somodevilla/Getty Images

The renovations were originally approved by the NCPC in September 2021 and featured plans to include the luxurious water features, terrace gardens, VIP elevators, and private dining rooms.

During the hearing, however, Powell insisted that these renovations were not taking place despite no changes being made to the original project.

“There’s no VIP dining room. There’s no new marble. There are no special elevators,” Powell said during the hearing. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”

Powell claimed that the construction plans previously approved in 2021 have since changed. Despite his claim, the Fed would not be able to change these plans without formally submitting the modifications to the NCPC and the Commission of Fine Arts. According to the NCPC's website, the latest approval for the project was submitted in September 2021, and there have been no new requests filed since then.

Because of these discrepancies, Vought said OMB will be conducting further oversight on the project.

"Chairman Jerome Powell has grossly mismanaged the Fed."

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Debt spiral looms as Trump tests tariffs to tame rates

Following the market’s reaction to Donald Trump’s recent tariff hikes, many investors remain fixated on short-term stock declines. But I’m less concerned about the immediate drop in equities and more focused on the broader ripple effects — especially given the current state of U.S. fiscal policy.

The Trump administration inherited serious economic challenges from the last four years of Bidenomics, a mess made much worse by unsustainable levels of deficit spending.

A stock market downturn could cut tax revenue significantly. In that case, any interest savings might be wiped out — or worse.

U.S. debt has surpassed 120% of GDP. Deficits now resemble those of a wartime economy. The government’s interest payments exceed defense spending — a major warning sign for any nation. Meanwhile, inflation remains stubbornly high.

The new administration took office facing high interest rates — not historically high, but elevated relative to recent norms, especially given the nearly $37 trillion in national debt — and a strong U.S. dollar. That hinders Trump’s policy options.

Given that context, are tariffs a strategic move to lower interest rates, refinance the debt, and buy the administration some breathing room? If so, can that approach work — and at what cost?

Roughly $7 trillion in U.S. debt is scheduled for refinancing this year. Add a projected $2 trillion deficit, and the government faces an enormous financing challenge.

The administration may be betting that aggressive tariff policy triggers a “flight to safety,” prompting investors to move money out of equities and into long-term government bonds. Greater demand for bonds would push their prices higher and yields lower, since bond prices and yields move in opposite directions.

We saw some evidence of this last week when the 10-year Treasury yield dipped below 4%, though it rebounded above 4% by Monday.

A stock market sell-off could pressure the Federal Reserve to cut short-term interest rates. So far, Fed Chairman Jerome Powell has shown no willingness to step in — but that could change.

The strategy carries significant risk. Federal tax revenue depends heavily on both economic growth and stock market performance. If markets continue to tumble, government revenue could shrink, adding further strain to an already fragile fiscal outlook.

Even if yields on the 10-year Treasury dropped by 100 basis points (or 1%), and the government managed to refinance all $9 trillion in scheduled debt, the interest savings would total only about $90 billion.

But that scenario is unlikely. Issuing more Treasury bonds increases supply, which typically pushes yields higher — unless some outside force steps in. And if such intervention is possible, it raises a larger question: why pursue this risky strategy in the first place?

There are also other risks to consider. A stock market downturn could cut tax revenue significantly. In that case, any interest savings might be wiped out — or worse, deficits as a percentage of GDP could grow even larger.

On top of that, a declining market can trigger the “reverse wealth effect.” When portfolios shrink, consumers tend to spend less. Since consumer spending makes up about 70% of the U.S. economy, that kind of pullback can slow growth. Businesses may also become more cautious, further weakening economic activity.

Luke Gromen of Forest for the Trees recently pointed out that in 2022, a 20% drop in the stock market led to a $400 billion decline in federal tax receipts. If the same happens in 2025, the financial impact would far outweigh any gains from refinancing debt.

In a recent report, Luke Gromen noted that the last three recessions pushed the U.S. deficit higher by 6%, 8%, and 12% of GDP, respectively. In today’s terms, that would mean increases of $1.6 trillion, $2.1 trillion, and $3.2 trillion during a recession.

Yet, Congress has offered no serious plan to cut spending. Any reductions that do happen would likely shrink GDP, which makes solving the problem even more challenging. That leaves the administration with very little room to maneuver.

While the White House denies any intent to trigger a market crash, some economists believe the administration’s aggressive tariff strategy may be designed to lower interest rates by creating financial stress.

If true, it’s a high-risk approach to managing the government’s rising interest burden. The longer it takes to deliver results, the greater the danger it backfires — potentially triggering a debt spiral instead of relief.

Let’s hope for a resolution before those risks materialize.

Why Comparing Trump’s Tariffs To The Smoot-Hawley Act Is Dishonest

Trump's tariffs will work — but they'll work even better with the Federal Reserve's help.

Fed vice chair exits role as DOGE gears up for audit

Federal Reserve Board Vice Chair for Supervision Michael Barr resigned from his position last week after he previously claimed that he wanted to avoid a potential "dispute over the position" with the Trump administration.

Barr's resignation follows reports that the Department of Government Efficiency is preparing to audit the Federal Reserve.

'Asking a Magic 8-Ball whether we should change rates is ACTUALLY better than the Fed!'

In January, Barr sent a letter to then-President Joe Biden, stating that he planned to exit as vice chair on February 28 or earlier if a successor was confirmed. He noted that he would "continue to serve as a member of the Federal Reserve Board" after stepping down.

In a press release announcing his decision, Barr called it "an honor and a privilege to serve as" vice chair, which he noted was a position "created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve's supervision and regulation of the financial system."

"The risk of a dispute over the position could be a distraction from our mission. In the current environment, I've determined that I would be more effective in serving the American people from my role as governor," Barr declared.

Bloomberg reported that Vice Chair Philip Jefferson and Governor Michelle Bowman remain on the committee. The media outlet noted that President Donald Trump will likely have to appoint an existing board member as the next vice chair for supervision since a new vacancy is not expected until next year.

Elon Musk, a critic of the Federal Reserve, indicated last month that the DOGE is preparing to conduct a review of the central bank.

"All aspects of the government must be fully transparent and accountable to the people. No exceptions, including, if not especially, the Federal Reserve," Musk wrote in a post on X.

He has repeatedly called the Federal Reserve "absurdly overstaffed."

According to a September 2023 report from Reuters, the central banking system employs roughly 24,000 people.

Federal Reserve Chair Jerome Powell has pushed back on Musk's overstaffing claims.

"We run a very careful budget process where we're fully aware. We owe that to the public, and we believe we do that," Powell told Fox Business in January.

Musk has also scrutinized the Fed's system for determining rate changes.

"Asking a Magic 8-Ball whether we should change rates is ACTUALLY better than the Fed!" he stated.

Musk has argued that lowering rates would "materially benefit lower income earners."

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Government broke the housing market — only this will fix it

Rates aren’t the problem

Get government out of the way

Jerome Powell’s luxury Fed is failing the American people

Failure to lead

Time for accountability

Vought slams Fed Chair Powell over 'grossly mismanaged' luxury renovations

Debt spiral looms as Trump tests tariffs to tame rates

Why Comparing Trump’s Tariffs To The Smoot-Hawley Act Is Dishonest

Fed vice chair exits role as DOGE gears up for audit

'F**k you!' Hunter Biden explodes over deportations in interview about his dad, immigration, and George Clooney

Campaign office for Ocasio-Cortez vandalized with far-left message

Is this how we beat China? Trump’s AI dream guts small-town USA

Here’s What The Corporate Media Won’t Tell You About Rising Measles Cases

Quick Fix: Why are there so many uninsured drivers — and how can I protect myself?

Hunter Biden Says He'd 'Invade' US Ally El Salvador To Bring Back Illegal Immigrants If He Became President

Rates aren’t the problem

Get government out of the way

Failure to lead

Time for accountability

We’ll keep you informed with top stories for conservatives who want to become informed decision makers.