Supreme Court Ruling Opens Door to Mass Federal Layoffs

Trump’s push to shrink government could hit housing, jobs—and maybe your mortgage rate

Welcome back to KPA Wealth. — Today we kept it simple. Supreme Court allows Trump’s layoffs and today’s Interest Rates.

How Trump’s Layoffs Could Quietly Shake Up Interest Rates

The Supreme Court just gave the go-ahead for the administration’s plan to move forward with large-scale federal workforce cuts. That means thousands of jobs could be eliminated, and several agencies—including HUD—could see big budget reductions.

Supporters see this as a move toward leaner government. Critics worry about the impact on public services. Either way, the effects are likely to ripple through the economy.

One key question: how will this affect interest rates? On paper, more unemployment could slow the economy, which often leads the Fed to lower rates. But it might not be that simple. The government could use contracting, budget shifts, or temporary hires to minimize the visible job loss. That could keep the official numbers steady—and the Fed cautious.

So even if economic stress increases, mortgage rates and borrowing costs might not drop the way we’d expect. It could turn into a scenario where the data says one thing, but everyday people feel something very different.

Whether you view this as reform or disruption, the real-world impact on housing, jobs, and rates is something we’ll be watching closely.

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Kyle Allgair
CEO of KPA Wealth
📞 (279) 977-8149 | ✉️ [email protected]
🌐 KPAhomeloans.com

Kyle Allgair is the CEO of KPA Wealth, and is continuously helping clients build wealth through real estate and strategic financial planning. Contact him for personalized advice on achieving your financial goals.