The Federal Reserve has cut interest rates by 25 basis points. However, with Donald Trump returning to the White House, his proposed policies could have significant inflationary effects.

Redfin chief economist Daryl Fairweather joins Wealth! to discuss these developments.

Fairweather observes that markets have already priced in higher rates, noting that Trump's proposed policies "may actually end up increasing inflation." She specifically points to policies such as tariffs, which could make it more challenging for the Federal Reserve to maintain lower rates.

"It's really a wait and see situation. We really don't know what Trump is going to do or how far he is going to take things," she states.

Fairweather notess that while Trump aims to pressure the Federal Reserve to lower rates, Fed Chair Jerome Powell has maintained that "he was going to keep on the same path."

Watch the video above to hear Fairweather's views on why the housing affordability crisis "is here to stay" under Trump, primarily due to underlying supply dynamics.

To watch more expert insights and analysis on the latest market action, check out more Wealth here.

This post was written by Angel Smith