As America grapples with a cooling housing market, real estate mogul Grant Cardone is placing direct blame on Federal Reserve Chairman Jerome Powell. Speaking on Mornings with Maria, the Cardone Capital CEO accused Powell of causing what he described as a “housing crisis” that’s damaging the middle class.
“He has done more damage to housing and the middle class than any single Fed member in history,” Cardone stated.
Cardone criticized the Fed’s interest rate policy, claiming high borrowing costs have locked out buyers and stalled home sales. He pointed to the current imbalance between supply and demand, noting there are roughly 500,000 more homes listed than there are buyers.
According to Cardone, the issue is simple: elevated rates deter activity. “Activity drives the economy,” he said, explaining that lower rates could reignite buyer demand and allow inventory to move. “When you have supply but no demand, prices don’t drop. Homes just sit.”
Following the Federal Open Market Committee’s May meeting, the Fed kept its benchmark rate steady between 4.25% and 4.5%. Cardone argued this move prevents both buyers and investors from reentering the market, further delaying recovery.
Despite signs of easing inflation, Cardone believes Powell’s rate strategy is outdated. “Inflation is dropping, yet rates remain high. If we want to move homes, we need lower interest rates.”
He also linked the market’s earlier strength to former President Donald Trump’s economic optimism. Trump himself recently called for a full percentage point rate cut, writing on Truth Social, “Too Late at the Fed is a disaster!”
Cardone’s remarks echo a growing sentiment among real estate investors who say the Fed’s monetary stance is doing more harm than good in today’s fragile housing landscape.
