Trump Turns to Progressive Ideas for Affordability
Estimated reading time: 4 minutes
- Pivot to progressive ideas: Trump looks to the left for affordability policy inspiration.
- Bold policy proposals: 10% cap on credit card interest, limits on large housing buyers, and a $200 billion push into mortgage bonds via Fannie Mae and Freddie Mac.
- Controversial tools: government stakes in private firms and pressure on the Fed to lower rates, amid a Justice Department probe of the central bank.
- Context from opponents: Elizabeth Warren warns Trump has not yet delivered relief and cautions about costs.
Trump’s affordability pivot
President Donald Trump is pursuing unlikely allies as he outlines a new affordability agenda. To the left, he has renewed a campaign promise to cap credit card interest at 10% after not advancing it earlier in his term, vowed to ban large investors from buying up housing, and directed mortgage giants Fannie Mae and Freddie Mac to invest $200 billion in mortgage bonds.
Trump’s approach also includes a more interventionist posture: government stakes in some private companies, penalties for noncompliance, and pressure on Federal Reserve Chair Jerome Powell to lower rates, actions that come as the Justice Department investigates the central bank. “These are not limited-government, free-market policies,” said Marc Short, a former White House official.
Trump’s track record remains contentious: the administration dismantled the Consumer Financial Protection Bureau, cut taxes for high earners in the One Big Beautiful Bill, and let ACA subsidies expire. A plan for 50-year mortgages stalled and faded. Elizabeth Warren argues Trump has not yet delivered, saying he should use leverage and pick up the phone to advance the policy ideas.
Live from Detroit: In a Detroit Economic Club speech, Trump said, “the Trump economic boom has officially begun,” hours after the Labor Department reported rising consumer prices. He pledged more details “in the coming weeks.” Read more →
Policy moves and controversy
The proposals, if pursued, would mark a sharp turn from traditional GOP free-market orthodoxy. Supporters say the steps aim to expand access to credit and housing for ordinary families, while critics warn of distortions and higher debt.
Analysts say any significant shift would redefine the party’s economic message and set a precedent for future administrations.
Detroit remarks and the affordability debate
Trump’s remarks highlighted affordability as a top priority but offered limited specifics. “In the coming weeks, I will be laying out even more plans to help bring back affordability,” he said, while dismissing concerns as a “fake word” used by Democrats to blame him for inflation.
Observers say the real test is whether these proposals translate into tangible relief on costs, mortgage access, and the supply of affordable housing.
Frey’s national spotlight in the immigration debate
Minneapolis Mayor Jacob Frey returned to national attention as the city faced an ICE surge after the fatal shooting of Renee Nicole Good. Frey’s blunt, emotional responses, and his calls for federal-local governance debates have positioned him at the center of a broader clash over immigration policy and local authority. Frey, reelected in November, has said he will not seek a fourth term, leaving open questions about his future ambitions.
Readers will find ongoing coverage of Frey’s leadership amid sanctuary policy debates, policing funding, and accountability. Read more →
Source: https://www.nbcnews.com/politics/politics-news/trump-pulls-lefts-economic-playbook-politics-desk-rcna253916
Leave a Reply