FHFA's Pulte calls for investigation and removal of Fed chair Powell

Fannie Mae and Freddie Mac chairman believes "deceptive Senate testimony" should have Powell removed "for cause"

FHFA's Pulte calls for investigation and removal of Fed chair Powell

The ongoing battle between the Trump administration and Federal Reserve chairman Jerome Powell continued on Wednesday, as FHFA director William J. Pulte posted a statement on his X account asking Congress to investigate Powell for political bias and “deceptive Senate testimony.”

Pulte’s statement was posted to his X account Wednesday morning. The primary reason noted in the statement revolved around the renovation of the central bank’s Washington, D.C. headquarters, which has been priced at $2.5 billion.

“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,’” Pulte said in the statement. “Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress. This is nothing short of malfeasance and is worthy of ‘for cause.’”

Pulte’s statement went on to say that Powell’s previous statements to Congress about the nature of the renovation were inaccurate.

“As Senator Cynthia Lummis said, ‘he [Chairman Powell] made a number of factually inaccurate statements to the Committee regarding the Fed’s plush private dining room and elevator, skylights, water features, and roof terrace,’” Powell said. “And that, ‘this is typical of the mismanagement and ‘don’t bother me’ attitude that Chair Powell has always shown.’

“Chairman Powell needs to be investigated by Congress immediately.”

Powell released a statement before his testimony, acknowledging the cost overruns but denying rumors of more lavish upgrades.

“All of the inflammatory things the media carried are not in the current plan,” Powell said. “There is no VIP dining room, no new marble, no special elevators. No new water features, no beehives and no roof terrace gardens.”

Powell indicates rate cuts possible soon

The statement from Pulte comes 24 hours after Powell spoke at a European Central Bank forum, where he indicated that the Fed would have already made more extensive cuts if not for tariffs.

In response to a question as to whether the Fed would have cut by now if not for the tariffs, he said, “I think that’s right.”

“We went on hold when we saw the size of the tariffs,” Powell continued. “All inflation forecasts for the United States went up materially as a consequence of the tariffs. We didn’t overreact; in fact, we didn’t react at all. We’re simply taking some time. As long as the US economy is in solid shape, we think the prudent thing to do is to wait and learn more, and see what those effects might be. They haven’t really shown up, so, for now, we’re waiting.”

Pulte responded to Powell’s comments about expecting to see higher inflation rates this summer by calling him a “moron.” He went on to also blame the Biden administration for higher inflation and increased mortgage costs.

“Jerome Powell’s tenure as Fed Chair has been a masterclass in economic Mismanagement,” Pulte said on X. “Under Biden, his Reckless money-printing fueled 40-year-high inflation, doubled mortgage payments, and triggered historic bank collapses like SVB—leaving retirees and homeowners holding the bag.”

Focused on his job

Powell was asked about the criticism he has faced from the Trump administration at the European Central Bank forum.

“I’m very focused on just doing my job,” Powell said. “The things that matter are using our tools to achieve the goals that Congress has given us: maximum employment, price stability, financial stability. That’s what we focus on, 100%.”

However, Powell wouldn’t commit to remaining on the Fed after his term as chair was over. When asked, he said, “I have nothing for you on that today.”

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