FHFA Director Bill Pulte demands Jerome Powell’s immediate resignation as Federal Reserve policies continue to cripple the housing market and threaten economic stability.
Key Takeaways
- FHFA Director Bill Pulte publicly called for Federal Reserve Chairman Jerome Powell to resign following the Fed’s decision to keep interest rates unchanged
- President Trump urged Powell to implement a substantial 2.5% cut to the Fed funds rate to stimulate economic growth
- Powell cited labor market challenges and tariff uncertainties as reasons for maintaining current rates despite inflation nearing the Fed’s 2% target
- Housing market experts warn that high mortgage rates are severely restricting new construction and could trigger a broader economic downturn
- Unemployment is rising toward 4.2%, a threshold the Fed previously identified as concerning
Federal Housing Chief Demands Powell’s Resignation
Federal Housing Finance Agency Director Bill Pulte has taken the extraordinary step of publicly calling for Federal Reserve Chairman Jerome Powell to step down. The demand came shortly after President Trump urged Powell to cut the Fed funds rate by a substantial 2.5%, highlighting growing frustration with the central bank’s monetary policy. This rare public rebuke from a fellow federal agency director signals deepening concerns about Powell’s leadership and the Federal Reserve’s approach to interest rates amid economic uncertainty. Housing industry experts have increasingly voiced concern that the Fed’s stubborn maintenance of high interest rates is needlessly damaging the housing sector.
“FHFA Director Bill Pulte called for Federal Reserve Chairman Jerome Powell to resign today, shortly after President Trump urged Powell to cut the Fed funds rate by 2.5% in a social post,” said Bill Pulte, FHFA Director Housing Wire
Fed’s Decision to Maintain High Rates Despite Economic Warning Signs
The Federal Reserve recently announced its decision to keep the Fed Funds rate unchanged at its current elevated level, ignoring mounting evidence that the economy needs relief. Powell defended this position by citing supposed challenges in the job market and uncertainty regarding tariffs as justifications for not planning rate cuts. However, critics point out that the Personal Consumption Expenditures (PCE) data now shows headline inflation at just 2.1% year-over-year, essentially meeting the Fed’s 2% target. This data suggests the Fed is unnecessarily maintaining a restrictive monetary policy that continues to hamper economic growth and specifically the housing market.
Adding to concerns about Powell’s judgment, the unemployment rate is steadily rising toward 4.2%, a threshold the Federal Reserve previously indicated would be concerning if surpassed. Despite this trend, Powell’s characterization of the labor market as merely “challenging” appears disconnected from the reality facing American workers and businesses. The contradiction between Powell’s assessment and actual economic indicators has prompted increasing scrutiny of the Fed’s decision-making process and Powell’s leadership capabilities. President Trump has been vocal in his criticism of Powell’s approach, describing him as “stupid” for failing to lower rates.
Housing Market Crisis Deepens Under High Interest Rates
Housing starts data reveal minimal progress since reaching peak levels in 2022, with homebuilders increasingly reluctant to issue new permits due to prohibitively high mortgage rates. Industry analysts suggest that a decrease in mortgage rates to approximately 6% could significantly stimulate housing market activity and revitalize construction. The current stagnation in residential construction poses a severe threat to the broader economic cycle and job market, as historical data consistently shows that job losses in the housing sector often precede economic recessions. The Federal Reserve’s refusal to acknowledge this relationship has drawn sharp criticism from housing experts.
Residential construction represents a critical component of the American economy, with ripple effects extending to manufacturing, retail, and services sectors. The current restrictive monetary policy is creating an artificial constraint on housing supply at a time when demographic trends indicate strong demand. This mismatch is causing housing affordability to worsen for average Americans while simultaneously reducing economic growth potential. The HousingWire Daily podcast recently highlighted fundamental flaws in the Fed’s decision-making process, suggesting Powell’s team is overlooking crucial housing market indicators in their economic assessments.
Mounting Pressure for Change in Fed Leadership
With Pulte’s call for Powell’s resignation and President Trump’s vocal criticism, pressure is intensifying on the Federal Reserve to reconsider its approach to interest rates. Economic experts point out that the Fed’s current policies appear increasingly disconnected from economic realities, particularly in crucial sectors like housing. The growing chorus of criticism from both public officials and industry leaders suggests that Powell’s position may become increasingly untenable if economic conditions continue to deteriorate. “Many conservative economists argue that lower interest rates would unleash American economic potential without triggering significant inflation, given current economic conditions,” said Bill Pulte.
The public disagreement between Pulte and Powell represents more than a policy dispute – it reflects fundamentally different visions for America’s economic future. While Powell continues to prioritize fighting inflation that has largely subsided, Pulte and President Trump advocate for policies that would stimulate growth, increase housing affordability, and strengthen American families’ economic position. As mortgage rates remain elevated and housing construction stagnates, the consequences of this policy disagreement are being felt by everyday Americans struggling to achieve homeownership or move up the housing ladder in an increasingly challenging market.
