In a brazen move, the Trump administration has launched a vexatious attack on Jerome Powell, the chair of the Federal Reserve. This should be viewed in the context of America’s deepening affordability crisis, which the president once dismissed but is now scrambling to claim as his own cause.
The rising cost of living is eroding Trump’s support ahead of the congressional midterms. By initiating legal action against the Fed, the president is attempting to shift blame for increasing borrowing costs. Yet, despite controlling the presidency, Senate and House, the Republican-led government has passed little beyond a large tax-cutting bill that primarily benefits the wealthy. They have failed to legislate on pressing issues like housing supply, childcare, healthcare costs or wages, with most of their actions worsening affordability.
Trump’s sudden enthusiasm for credit card caps and housing interventions reeks of pure opportunism. Affordability is not an abstract talking point; it is increasingly driving US politics, as exemplified by the victory of New York’s Zohran Mamdani, whose campaign zeroed in on the cost of living. Democratic leaders are now listening, with Senator Elizabeth Warren prepared to take on vested interests within her own party.
In contrast, Republicans have offered little more than gestures, scapegoats and reversals of their own past consumer protections. Trump’s economic policies are defined by theatrical announcements that do nothing to challenge corporate power, while his administration has actively worked to entrench it. Affordability remains elusive, and scapegoats, from the Fed to “Democrats,” must continually be found.
