Affordability is Trump’s ‘greatest threat’ ahead of US midterm elections, says Bill Ackman in Singapore

[SINGAPORE] The US administration’s “greatest threat” in the upcoming midterm elections is the issue of affordability, as many Americans feel “left behind” despite rising stock and home prices, said the founder and chief executive of Pershing Square Capital Management Bill Ackman on Monday (Jan 12).

That is why US President Donald Trump called for a one-year cap on US credit card interest rates at 10 per cent recently, among other measures, noted Ackman, who is also Trump’s confidante.

“I think he views (affordability) as his single biggest weakness,” the hedge fund manager added.

Ackman was speaking in Singapore at the UBS Asia Wealth Forum, held at the Sands Expo and Convention Centre, in a session moderated by Iqbal Khan, president of UBS Asia-Pacific.

Historically, the party of the sitting US president tends to lose seats in Congress in the middle of their four-year term during the midterm elections.

In 2026, these elections are scheduled for Nov 3, when all 435 seats in the US House of Representatives and 35 of the 100 seats in the Senate will be contested.

Control of both chambers will help determine the legislative agenda for the remainder of the president’s term, making economics and sentiment central campaign issues.

“We’re very bullish on markets, (we’re at) all-time highs (and are) very bullish on the overall economy,” said Ackman. “However, we have a meaningful percentage of the country that’s being left behind.”

On home prices, one way to lower mortgage rates would be the further adoption of mortgages that do not allow for pre-payment.

SEE ALSO

Bill Ackman prepares for 2026 Pershing Square IPO, FT says

Such loans typically prevent borrowers from paying off the loan early, reducing interest-rate risk for lenders and allowing them to offer lower base rates by up to 65 basis points, Ackman suggested, based on conversations with mortgage funds.

Another idea Ackman floated for addressing affordability would be to create in the US the equivalent of the Australian superannuation pension system: a mandatory, employer-linked retirement savings plan that channels contributions into diversified investments, including equities.

He has already pitched the proposal to Trump. “The president loves this idea, and I think it’s going to happen.”

Letting everyone have more savings and a wider stake in the markets would make “everyone a capitalist”, he added. “If we don’t, we’re going to have revolutions where the capitalists are going to be taken out.”

On the topic of revolutions, Ackman also weighed in on crises in Iran and Venezuela, as well as Trump’s interest in Greenland.

The US is, “as early as the next 24 hours”, likely going to take “very powerful steps” to assist in the ongoing protests in Iran, which have evolved into widespread demonstrations against the regime amid economic strain and calls for political change.

Meanwhile, the Trump administration’s recent military action in Caracas to capture and extradite Venezuelan President Nicolas Maduro and his wife was a “very intelligent way” of taking control of the economic resources in Venezuela, which has the world’s largest oil reserves.

“I think it is a very powerful signal. I think every dictator around the world will be sleeping with one eye open at this point going forward, and I think that’s a very good thing,” added Ackman.

On Greenland, he does not expect US troops to take over the country – which is part of Denmark – but expects a deal to be made for the US to “have a major military presence there”.

Trump has an “unusual” negotiating style, but it has worked for him, said Ackman. “If our enemies were to take over Greenland, that would be against the interests of the country.”