The political pressure on Federal Reserve Chair Jerome Powell escalated sharply on Wednesday after Bill Pulte, Director of the Federal Housing Finance Agency (FHFA), called for Congress to investigate Powell for allegedly lying during recent testimony.
In a fiery statement, Pulte accused Powell of giving “deceptive” and misleading answers during a Senate Banking Committee hearing last week regarding the Fed’s controversial $2.5 billion renovation of its Washington, D.C. headquarters. Powell told lawmakers that many of the criticized renovation features—like board member-only elevators and high-end finishes—were outdated proposals that had been scrapped. Others, he claimed, were routine maintenance for a historic building.
But Pulte isn’t buying it.
“This is nothing short of malfeasance,” Pulte said Wednesday. “His misleading testimony alone is cause enough for removal.”
Trump: “Powell Should Resign Immediately”
President Trump wasted no time weighing in, sharing Bloomberg’s article on his Truth Social account and declaring, “Powell should resign immediately.”
This marks an intensification of Trump’s recent campaign to oust Powell ahead of the 2025 election, as he seeks to reshape economic policy and monetary leadership.
Trump and Pulte both argue that the Fed’s benchmark interest rate — currently between 4.25% and 4.5% — is too high, stalling the housing market and broader economy. Mortgage rates remain near 7%, and Trump has blamed Powell’s caution for hurting first-time homebuyers and slowing construction.
Pulte’s Unprecedented Campaign
Pulte, who oversees Fannie Mae and Freddie Mac, has taken the rare step of publicly criticizing another top financial regulator. He’s also no stranger to housing politics — as the grandson of the late billionaire developer William Pulte, he holds over $80 million in housing-related assets, according to his 2025 financial disclosure.
He claims that Powell’s failure to cut rates faster is directly harming Fannie and Freddie’s ability to support the housing market.
“As Chairman of Fannie Mae and Freddie Mac, I can tell you that Jay Powell is hurting the housing market by being too late to lower rates,” Pulte said last week. “He needs to resign, effective immediately.”
What’s Next?
Powell has not responded to Pulte’s accusations, and the Fed has declined to comment. So far, there is no formal Congressional inquiry underway, but with Trump and Pulte aligned in their push, political momentum may build heading into the July 9 tariff deadline and Powell’s next public appearances.
Markets will be watching closely—not just for fallout from this growing power clash, but for signs of whether the Fed will alter its path amid rising political pressure.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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