![\"VP](\"https:\/\/www.europesays.com\/people\/wp-content\/uploads\/2026\/09\/108358580-17884615191788461517-48158552977-1080pnbcnews.jpg\")
<\/p>\n<\/p>\n
The Federal Reserve<\/a> should cut interest rates<\/a> to make homes more affordable, Vice President JD Vance<\/a> said Thursday, adding to the pressure President Donald Trump<\/a> has placed on the central bank to cut borrowing costs.<\/p>\n The remarks came days after Trump’s handpicked Fed chair, Kevin Warsh<\/a>, hinted at the possibility of doing the opposite: addressing persistently high inflation by hiking rates<\/a>.<\/p>\n “Obviously the president cares a lot about interest rates,” Vance said at a White House press briefing when asked by CNBC’s Eamon Javers for the Trump administration’s view on the volatile U.S. bond market<\/a>.<\/p>\n “One of the main reasons he cares a lot about interest rates is because he wants Americans to be able to afford a home,” Vance said, referencing Trump. “When interest rates go higher, that means that borrowing costs are higher.”<\/p>\n “We believe that the Fed should be lowering interest rates,” he said, calling it the “proper and responsible” response to recent U.S. inflation data.<\/p>\n Vance added, “We’re doing a lot of things to try to keep those interest rates down, but it would be nice to have some help from the Federal Reserve.”<\/p>\n Vance’s remarks may add to concerns about the erosion of the Fed’s independence under Trump, who aggressively pushed Warsh’s predecessor to slash rates and is trying to fire Governor Lisa Cook.<\/p>\n Read more CNBC politics and policy coverage<\/p>\n Less than a week earlier, Warsh said he is committed to bringing the inflation rate back<\/a> down to the Fed’s 2% target, and sees interest rates as the key tool to rein it in.<\/p>\n “Short-term interest rates are the predominant tool to achieve the dual mandate,” he said at a speech in Jackson Hole, Wyoming.<\/p>\n Vance’s remarks came less than two weeks before the Federal Open Market Committee is set to convene and decide whether or not to adjust rates. <\/p>\n The outcome of that meeting is far from certain: Traders are about evenly split on the odds of a rate hike at the Sept. 15-16 meeting, according to CME Group’s FedWatch<\/a> gauge.<\/p>\n On Tuesday, Fed Governor Michael Barr said he would be prepared to back a rate increase<\/a> if inflation stays elevated.<\/p>\n But on Thursday morning, Governor Christopher Waller said he is more likely to keep rates steady<\/a>.<\/p>\n