Housing Finance Chief to Newsmax: It's Time for Fed's Powell to Resign
Michael Katz 

Bill Pulte, director of the Federal Housing Finance Agency, told Newsmax on Thursday he has a simple message for Federal Reserve Chair Jerome Powell after the agency’s board declined to lower interest rates this week: Resign.

The Fed on Wednesday held its benchmark interest rate steady at 4.25% to 4.5%, keeping borrowing rates elevated for Americans for the fourth straight time. The last time it cut rates was in December, by a quarter of a percent. President Donald Trump responded later that day in a post on Truth Social calling Powell “a real dummy, who’s costing America $Billions!” 

“Look, this guy, we had to deal with him all throughout COVID, as you know,” Pulte told “Rob Schmitt Tonight.” “And we had mortgage rates skyrocket. We had inflation skyrocket over the last four years. It’s time for Jerome Powell to go. I think President Trump has been a little bit nice to this guy.

“And I think frankly, something needs to happen because we have a housing market that is dependent on interest rates and sound monetary policy. And we have a guy who’s not even looking at the facts. He’s not even looking at the numbers. Inflation has come down. Rates need to come down.”

Powell, appointed in Trump’s first term as Fed chair, was nominated to a second four-year term by Joe Biden in 2022 and his current term will end in May. Board members of independent federal agencies like the Federal Reserve can only be forced out before their terms expire “for cause,” according to CBS News, citing a 1935 Supreme Court decision that affirmed Congress’ authority to create such agencies.

During a news conference Wednesday, Powell brushed off Trump’s criticisms, saying he is focused on the work at hand, CNN reported.

“From my standpoint, it’s not complicated,” Powell said. “What everyone on the [Fed policymaking committee] wants is a good, solid American economy with strong labor market and price stability. That’s what we want. Our policy is well-positioned right now to deliver that.”

Pulte, who is responsible for overseeing Fannie Mae and Freddie Mac, companies that package U.S. mortgages into investment products which have been under federal control since the collapse of the housing market during the 2007-08 fiscal crisis, countered fears that lowering interest rates could lead to higher housing prices.

“Actually, we have a problem, which is that interest rates were low for so long that people are locked into their homes,” Pulte said. “And so, you can’t really get that old inventory churning. And so, we really need to get supply up in this country.

“And, Rob, if we have people locked in these homes with these low interest rates, you’re not going to see that cycle. You’re not going to see that inventory pick up. And so, I actually think it would be very good for home prices if we could lower rates and get things moving again in this country.”

 

 

Michael Katz is a Newsmax reporter with more than 30 years of experience reporting and editing on news, culture, and politics.

www.newsmax.com