Real estate tycoon Grant Cardone is celebrating Trump's victory over Harris and believes that Trump's return to the White House will lead to a significant interest rate cut by the Federal Reserve.

Cardone, the CEO of Cardone Capital, attended Trump's election night party at Mar-a-Lago on Wednesday evening. When Trump declared victory, he said Trump would quickly address the housing crisis facing the United States.

Speaking on Fox Business during an interview on Wednesday, Cardone mentioned Trump, saying: "We have a huge real estate problem in our country - he (Trump) knows this."

"The only way to alleviate this problem is for (Trump) to exert huge pressure on the Federal Reserve, forcing it to cut interest rates. I believe he will do this," Cardone continued. "I believe we will achieve a rate cut within the next 12 months, and it will be a historic one."

Cardone stated that lowering interest rates can not only revitalize America's stagnant real estate market but also alleviate the commercial property debt issues the country is facing. He believes that the current mortgage rates close to 7% must be reduced to 4% or lower.

The real estate investor with a portfolio of over $5 billion in property investments predicts that shortly after Trump returns to the White House in January next year, the Democratic Party will pressure the media, claiming that the United States is in an economic recession with terrible unemployment figures.

Cardone said: "You will see all these headlines putting him (Trump) in a difficult position, but this will actually help him lower interest rates and address housing and commercial issues. Therefore, I believe Trump will greatly benefit real estate. In fact, I believe he is the only one who can solve the problems."

What can re-elected Trump do to the Federal Reserve, and what can't he do?

Trump's re-election as President of the United States has raised questions about whether he will seek to limit the independence of the Federal Reserve, as he has expressed a desire to have a "voice" on interest rates. He will allow Federal Reserve Chairman Powell to serve his term, but will not reappoint him.

The most direct power of the US President over the Federal Reserve is through appointing candidates to fill vacancies on the board and appointing them to key positions in the institution, including the Chair. Powell's term as Chair will end in 2026, giving Trump an opportunity to appoint a new Fed Chair. Powell's 14-year term as a board member will end in 2028, one of the two scheduled opportunities for Trump to appoint Fed board members.

Another opportunity will arise in January 2026 when the term of Fed Governor Kuggler ends. However, these two positions are just a small part of the 19 decision makers at the Fed (all Fed governors and the 12 regional Fed presidents).

In addition, the President appoints Fed governors, Chair, and Vice Chair positions that must be confirmed by the Senate, providing a check on the appointments. Trump's Republican Party gained control of the Senate in the November 5th election, but during the previous presidential term from 2017 to 2021, the Republicans also held the majority in the Senate, and opposition from lawmakers at that time thwarted some of his Fed officials' appointments.

The most direct way Trump can communicate with the Federal Reserve is by removing its Chair, which he discussed in 2018 when he was angry about Powell's series of rate hikes. However, legal scholars state that the President cannot easily dismiss the Fed Chair.

Editor/Rocky