Grant Cardone Blames One Person for the Housing Crisis
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Is the Federal Reserve fixing the economy… or making things worse?
That was the central tension in a heated FOX Business Live segment on Mornings with Maria, where Grant Cardone took direct aim at Fed Chair Jerome Powell and the impact of high interest rates on the housing market.
Cardone’s argument: Powell’s actions as Fed Chair aren’t just slowing the economy; they’re actively strangling it.
His words:
“We have a housing crisis caused by Jerome Powell. He has done more damage to the middle class and housing than any other single person or any decision that has ever been made out of Washington, D.C.”
Cardone had plenty more to say, but one panelist disagreed, explaining why, in his view, the Fed should absolutely not cut rates just yet.
Read on for the highlights of their argument.
Cardone: The Fed Froze the Market
Cardone painted a bleak picture: a real estate market with growing supply, stalled demand, and millions locked out of homeownership. And from what he said, it’s not because homes are unavailable, but because borrowing has become too expensive.
“You have 500,000 homes listed, [but] no buyers for those homes. And when the rates come down, prices will also come down with it, because you have more supply in the marketplace… and supply is what controls the prices.”
He rejected the idea that interest rate cuts would reignite inflation, arguing instead that activity, not price, is the key metric the Fed should be watching.
“Interest rates do not control the prices… If they lower the interest rates, they would actually stimulate activity. And activity is what makes the economy work.”
His proposed fix? Lower rates now. Reignite buyer and investor interest. Let the market move again.
“If you want homes to move in this country, we need investors back into the marketplace, and we need buyers back into the marketplace able to get a low-interest rate.”
The Counterpoint: Pain Now Prevents a Bigger Collapse Later
Kenny Polcari, a longtime Wall Street trader, pushed back. He argued the current freeze is the result of years of overly loose monetary policy, and that any rush to slash rates would repeat the same mistakes.
Polcari’s first counterpoint:
“The problem was that they kept rates too low for too long, and they created this explosion in the housing market.
“I think now what has to happen is rates have to stay where they are and allow people to recognize that housing prices have gotten out of control, and they need to come down on their own.”
In his view, the Fed’s current stance is finally cooling off what had become an overheated and dangerous market. Bringing rates down too soon, Polcari warned, would undo that progress and kick off another speculative bubble.
Cardone fired back with his core belief that the Fed is misdiagnosing the issue, and its high-rate policy is making things worse.
He argued that keeping rates elevated isn’t curing inflation; it’s crippling the middle class, driving up housing costs, and halting transactions that would otherwise keep the economy moving.
But Polcari held his ground. He insisted housing prices need to come down on their own to restore market balance.
For now, that means holding firm on interest rates. Some qualified buyers can purchase now and refinance later when rates fall.
That, he argued, is the more sustainable path forward.
In Polcari’s view, the short-term pain we’re experiencing now is better than repeating a long-term mistake. He believes the current reset is necessary, and that dropping rates now would only inflate prices further.
Polcari wrapped up his point by saying,
“You absolutely cannot be cutting rates at this moment.”
So, where do you weigh in on this? Is Powell to blame for today’s housing affordability crisis? Or is it more likely that Cardone is not seeing the whole picture?
(And is that a rhetorical question?)
Sarah Lentz | Jun 11, 2025 | Housing Market
https://nowbam.com/grant-cardone-blames-one-person-for-the-housing-crisis/
@ChuckBarberini - #ChuckBarberiniRealEstate - @ChuckBarberiniRealEstate
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