The Fed's three-quarter-point cuts at the end of 2025 reduced the Fed Funds Rate to a range of 3.5% to 3.75%. While the Fed doesn't set mortgage rates directly, the FFR impacts the Treasury yields that mortgages (and other lending rates) tend to follow.

President Donald Trump said December inflation data supports his calls for Federal Reserve Chair Jerome Powell to cut interest rates after CPI showed 2.7% annual price growth.

U.S. President Donald Trump called for "meaningful" interest rate cuts on Tuesday after new inflation data showed consumer prices remained stable in December.

Inflation may not subside quickly enough for Federal Reserve Chair Jerome Powell to deliver another interest-rate cut before his term ends in May, with the Bureau of Labor Statistics reporting consumer prices rose 2.

Investors are expecting two 25-basis-point rate cuts from the Federal Reserve in 2026. JPMorgan now predicts they won't get any.

Trump urges Fed rate cuts after soft CPI, Bitcoin rallies, but policymakers remain cautious despite political pressure.

What culminated was a two-minute video released Sunday evening featuring Mr. Powell bluntly calling out the administration for seeking to leverage a criminal investigation into costs related to the Fed’s renovation of its headquarters as “pretexts” to coerce the central bank into lowering borrowing costs.

Even if Trump installs a Fed chair who's more keen to cut rates, it might not be smooth sailing.