A Showdown Looms Between the President and Federal Reserve

On Tap Today

• Interest Rate Showdown: Trump has previously criticized the Federal Reserve and its chairman, Jerome Powell, but now says he will “demand” the organization raise interest rates, regardless of the impact on inflation.

• Rent Control Webinar: Discover the challenges and opportunities of rent control, including strategies to navigate risks, retain tenants, and stay profitable. Sign up.

Presented by Partner ESI

Level Up Your Capital Plan for Better Facility Management

How’s your capital plan working for you? Tired of unexpected building system failures and budget surprises? There’s a solution. Done right, a Facility Condition Assessment (FCA) is your secret weapon for smarter, more proactive facility management.

Forget reactive repairs. A well-executed FCA is your roadmap for predictive maintenance and strategic capital planning. In this webinar, top experts will show you how to get an effective FCA and, more importantly, how to use it to reduce risk, get a real-time picture of facility health, and boost performance metrics across your entire organization – from the maintenance team to the C-Suite.

Editor’s Pick

A Showdown Looms Between the President and Federal Reserve

More signs point to a growing American economy, but a key question remains: what will happen with interest rates? The Federal Reserve has stated it plans to keep rates steady until inflation nears its 2 percent target. But, this approach has been contradicted by President Trump, who recently declared he would “demand” that rates be brought back down.

This could signal a brewing conflict between Trump and Federal Reserve Chairman Jerome Powell, whom Trump has criticized in the past. “It looks to me like he’s trying to lower interest rates for the sake of maybe getting people elected, I don’t know,” Trump said in an interview. Despite his criticisms, Trump has also said he would keep Powell as Fed Chair “especially if I thought he was doing the right thing.” It’s now clear that, for Trump, “the right thing” means following his lead on rate cuts.

While Trump doesn’t have direct authority to replace Powell, he could make the chairman’s position uncomfortable enough to prompt resignation. Either way, Powell’s term ends in May 2026, at which point Trump would likely nominate a new chairman who aligns with his policies—potentially a Republican majority Congress would confirm that choice.

For commercial real estate, a more politicized Federal Reserve and shifting interest rate policies could have significant consequences. Lower rates might stimulate borrowing and fuel new development, offering growth opportunities. But, politically motivated rate cuts, rather than data-driven decisions, could distort asset pricing and risk assessments, undermining investor confidence and destabilizing the market. Until we hear from the Fed at their meeting next week the market will need to accept a good amount of uncertainty.

Propmodo Webinars

Overheard

Are You Enjoying This Newsletter?

Propmodo Daily is written and edited by Franco Faraudo with contributions from readers like you and the Propmodo team.

📧 Forward it to a friend and suggest they check it out.

🔗 Share a link to this post on social media.

🗣 Have ideas for future topics (or just want to say hello)? Share your feedback and tips at [email protected] or connect with us on X through @propmodo.

✅ Not subscribed yet? Sign up for this newsletter here.

📫️ Please add our newsletter email, [email protected], to your contacts to make sure you don’t miss any updates.

Explore Propmodo

• Read exclusive articles about a variety of topics, including Real Estate, Workplace, Buildings, and Development.

• Browse our collection of interactive Propmodo Research e-books.

• Sign up for upcoming Propmodo Live Webinars or watch past Propmodo Live videos on-demand.

• Dive into Propmodo Technology articles, podcasts, and short videos about the future of commercial real estate.

Enjoy reading about trends and innovation in commercial real estate? Subscribe to Propmodo.com for unrestricted access to reliable, data-driven journalism and exclusive insights available only to subscribers.