The chair of the Federal Reserve made clear he would not resign, even under pressure. But pressure from the White House is likely, market watchers say.
The latest rise, to 6.79% for a 30-year mortgage, reflects bond market concern about President-elect Trump’s agenda. It extends an uptick in mortgage rates despite expected Federal Reserve rate cuts.
The average rate on a 30-year mortgage, the most popular home loan in the United States, rose to 6.79 percent this week, Freddie Mac reported on Thursday.
The central bank said that future cuts would be gradual amid higher inflation forecasts after the new government introduced spending and tax increases in its budget.
Policymakers have been cautious in cutting interest rates, despite inflation dropping below the central bank’s 2 percent target. With rising gas and electricity prices, inflation is expected to climb.
President-elect Donald J. Trump elevated Jerome H. Powell, the Fed chair, to his current role in early 2018, but later soured on Mr. Powell and considered trying to fire or demote him.
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