Grant Cardone, a prominent real estate investor and entrepreneur, has long been outspoken about the effects of economic policy on American households. In a recent appearance on FOX News, Cardone delivered pointed criticism of Federal Reserve Chair Jerome Powell, questioning the effectiveness of the central bank’s approach to inflation and its impact on the middle class.
“He actually wants to damage, as he promised a year ago, he was willing to even damage the middle class if it controlled inflation,” Cardone remarked, referencing Powell’s stated commitment to bringing down inflation even at the risk of economic pain.
Cardone’s skepticism toward the Federal Reserve is rooted in his decades of experience in real estate and finance. As CEO of Cardone Capital, he has witnessed firsthand how monetary policy decisions affect the housing market. Cardone argues that, “the American people need to know that Jerome Powell, nor any Fed has ever controlled inflation,” suggesting that the central bank’s tools are limited and sometimes even counterproductive.
Recent data appears to support some of Cardone’s concerns. The National Association of Realtors (NAR) reported that first-time homebuyers accounted for just 24% of home purchases in 2024, the lowest level since tracking began over four decades ago. Rising mortgage rates — hovering above 7% for much of the past year — have priced out many would-be buyers, particularly younger Americans and those without significant savings. The median home price in the United States has also reached record highs, further straining affordability.
The same report outlined how a record number of homes were purchased for cash. This means investors are increasingly buying up the already strained housing inventory, causing housing prices to continue to rise and further exacerbating unaffordability.
Cardone draws a direct line between these trends and Federal Reserve policy, stating, “Everywhere Jerome Powell is involved, prices are still up, mortgages are too expensive.” He contends that high interest rates, intended to curb inflation, have instead made homeownership increasingly unattainable for the middle class.
Cardone’s authority on these matters is exemplified by his personal and professional journey. Overcoming significant adversity in his youth, he built a multi-billion-dollar real estate portfolio and became a bestselling author and business educator. His philosophy emphasizes aggressive investing and challenges conventional approaches to wealth-building, particularly those that rely on traditional banking and lending systems.
He further asserted, “Jerome Powell has literally set the middle class back a decade,” a sentiment echoed by many struggling to enter the housing market. While Federal Reserve officials maintain that restrictive monetary policy is necessary to restore price stability, critics like Cardone argue that such measures disproportionately harm ordinary Americans.
In the broader context, Cardone’s remarks tap into a growing debate about the role of central banks, the affordability crisis in housing, and the future of the American middle class. As first-time homeownership hits historic lows, his perspective resonates with those seeking alternative solutions to persistent economic challenges.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
