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President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:
“Housing in our Country is lagging because Jerome “Too Late” Powell refuses to lower Interest Rates. Families are being hurt because Interest Rates are too high, and even our Country is having to pay a higher Rate than it should be because of “Too Late.” Our Rate should be three points lower than they are, saving us $1 Trillion per year (as a Country). This stubborn guy at the Fed just doesn’t get it — Never did, and never will. The Board should act, but they don’t have the Courage to do so!”
How Will Trump’s Statement Affect the Stock Market?
This latest post has the potential to affect the stock market. That’s because Donald Trump’s criticism of the Federal Reserve’s interest rate policy could lead to increased volatility in the stock market, particularly affecting homebuilders like D.R. Horton Inc, Lennar Corporation, and Pultegroup, as higher rates may dampen housing demand. Financial and real estate sector funds, such as the Financial Select Sector SPDR Fund and the Real Estate Select Sector SPDR Fund, might also experience fluctuations as investors react to potential changes in monetary policy. Trump’s statement may fuel speculation about future Fed actions, impacting investor sentiment and market dynamics.
Here are some of the stocks that might be affected:
D.R. Horton Inc ((DHI)),
Lennar Corporation ((LEN)),
Pultegroup ((PHM)),
Financial Select Sector SPDR Fund ((XLF)),
Vanguard Real Estate ETF ((VNQ)),
Real Estate Select Sector SPDR Fund ((XLRE)).