Federal Housing Finance Agency Director Bill Pulte demands Jerome Powell’s immediate resignation as the Federal Reserve’s inaction on interest rates continues to cripple America’s housing market and middle-class homebuyers.
Key Takeaways
- FHFA Director Bill Pulte called for Federal Reserve Chairman Jerome Powell to resign after the Fed kept interest rates unchanged.
- President Trump urged Powell to cut the Fed funds rate by 2.5%, echoing growing frustration with the Fed’s monetary policy.
- Current high mortgage rates are stalling housing construction and limiting affordability for American families.
- Powell cited labor market challenges and tariff uncertainty as reasons for maintaining high rates despite inflation being near the Fed’s 2% target.
- Lowering mortgage rates to 6% could stimulate housing market activity and prevent potential job losses in the residential construction sector.
Housing Agency Chief Demands Powell’s Resignation
In a bold challenge to the Federal Reserve’s leadership, Federal Housing Finance Agency Director Bill Pulte has called for Chairman Jerome Powell to step down following the Fed’s decision to maintain current interest rates. The demand came shortly after President Trump urged a significant 2.5% cut to the Federal funds rate, highlighting the growing discord between the administration’s economic vision and the Fed’s cautious approach. With mortgage rates hovering at levels that continue to suffocate the housing market, Pulte’s demand reflects mounting frustration among housing officials who see the Fed’s policies as directly harming American homeowners and buyers.
“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.
Economic Indicators Contradicting Fed’s Stance
The Federal Reserve’s decision to maintain high interest rates appears increasingly at odds with economic reality. Recent data shows headline inflation at 2.1% year-over-year, nearly aligned with the Fed’s 2% target. Meanwhile, the unemployment rate is trending upward toward 4.2%, a level that the Fed previously indicated would be concerning. Despite these warning signs, Powell described the labor market as merely “challenging” during his recent press conference, contradicting unemployment figures that would typically suggest intervention is necessary. This disconnect between economic indicators and Fed policy has fueled criticism that Powell is overlooking clear signals that rate cuts are overdue.
The housing market stands as one of the clearest victims of the Fed’s high-rate policy. Housing starts data shows minimal progress since peaking in 2022, with homebuilders reluctant to issue new permits due to prohibitively high mortgage rates. These conditions create a vicious cycle: as construction slows, housing supply tightens further, pushing prices higher while simultaneously making them unaffordable for many Americans due to expensive financing. Industry experts suggest that reducing mortgage rates to approximately 6% could break this cycle and stimulate much-needed activity in the housing sector, providing relief to countless families struggling to afford homes.
Growing Political Pressure on the Federal Reserve
President Trump’s frustration with Powell’s leadership has grown increasingly public, with the President recently describing Powell as “stupid” for failing to lower rates. This criticism reflects wider concerns about the Fed’s impact on everyday Americans, particularly in the housing sector where high rates continue to lock many potential homebuyers out of the market. “The residential construction industry, crucial to both the broader economic cycle and the job market, faces mounting challenges that could trigger wider economic repercussions if left unaddressed. Historical patterns show that job losses in construction often precede recessions, adding urgency to calls for the Fed to reconsider its stance,” said Bill Pulte.
Economic experts increasingly question the Fed’s decision-making process as highlighted in recent analysis. Powell’s concerns about uncertainty regarding tariffs appear to contradict the Fed’s mandate to focus on maximum employment and price stability. With inflation largely under control and warning signs appearing in employment data, the Fed’s reluctance to cut rates suggests a potential policy mistake that could unnecessarily harm American workers and families. As pressure mounts from both political leaders and housing officials, Powell faces a critical decision: adapt monetary policy to address clear economic needs or risk further calls for his resignation amid growing evidence that current policies are hurting rather than helping average Americans.
