Trump slams Fed Chair Jerome Powell as ‘Disaster’ as Mortgage rates Stay above 6.5% and 10-year yield nears 4.5%

The US President Donald Trump called Fed Chair Jerome Powell a “disaster for America” and said interest rates are “too high”, as posted by The Kobeissi Letter on X. At the same time, the 10-year US Treasury yield is close to 4.50%, showing borrowing costs are still high. The average rate for a new 30-year mortgage is now above 6.5%, making home loans expensive for buyers.

Mortgage rates have been moving up and down

Mortgage rates have been very unpredictable in 2026 and keep changing often. In early March, rates were around 5.75% before rising sharply, as noted by CBS News. By the end of March, rates crossed 6.3% mainly due to Middle East tensions and rising inflation. In mid-April, rates dropped below 6% for a short time when there was hope for peace talks. But rates went up again after talks slowed and oil prices stayed high. By early May, the 30-year mortgage rate is around 6.38%, keeping buyers confused about when to act.

No Fed meeting, but rates can still change

The Federal Reserve did not schedule any meeting in May. The Fed already paused rates in April for the third time in a row. The current benchmark interest rate is between 3.50% and 3.75%, as noted by CBS News. Many people think rates won’t change without a Fed meeting, but that is not true. Mortgage rates move based on many factors, not just Fed decisions.

Key factors that can move mortgage rates in May

Inflation data

The Consumer Price Index (CPI) report on May 12 is very important. Inflation reached 3.3% in early April, the highest in nearly 2 years, as per CBS News. High inflation pushed bond yields up and kept mortgage rates high. If inflation drops, investors may expect rate cuts, which can lower mortgage rates.

2. Middle East situation

Conflict involving Iran has increased oil prices and caused rate volatility. The Strait of Hormuz disruption pushed crude oil prices higher. High oil prices increase inflation and keep rates elevated. Any ceasefire or peace talks can quickly bring rates down. Even small positive news in April helped push mortgage rates near 6%.

3. Weak economy signals

If the economy slows down, mortgage rates can fall. Higher unemployment or slower wage growth can push investors toward safer assets, as per CBS News. This shift lowers bond yields and reduces mortgage rates. Consumer confidence is already weak this year. Credit card defaults are rising, showing financial stress. Lower spending or hiring could help bring rates down.

4. Fed officials’ statements

Even without meetings, Fed officials will keep speaking publicly. Their comments can strongly influence market expectations. If they hint at rate cuts in June, markets may react early. Even one strong statement from a Fed member can move bond yields. This can directly impact mortgage rates

Even without a Fed meeting in May, mortgage rates are not fixed. Inflation data, global tensions, and economic signals are still affecting rates. The May 12 CPI report is the most important event to watch. Peace in the Middle East or weaker economic data could quickly lower rates, as noted by CBS News. Home buyers and borrowers should keep watching the market instead of waiting blindly.

FAQs

Q1. Why did Donald Trump criticize Fed Chair Jerome Powell?

Donald Trump said Jerome Powell is hurting the economy because interest rates are too high.

Q2. Why are mortgage rates still high in 2026?

Mortgage rates are high due to inflation, global tensions, and bond market changes even without action from the Federal Reserve.