Powell’s Fed is backed into a bit of a corner. Its dual mandate is low unemployment and inflation, two often competing goals. Raising interest rates can slow inflation but increase job losses, while cutting interest rates can increase hiring but risk faster inflation.

Trump’s threats against Powell and his higher tariff policies have driven down the dollar and also pushed up the interest rate on 10-year Treasuries, which ticked higher to 4.35% Monday. Those rates are the benchmark for mortgage rates, meaning that borrowing costs to buy a house will likely stay elevated.