FHFA director says Fed chair should be removed ‘for cause’
Bill Pulte is asking Congress to investigate Jerome Powell for “malfeasance.” The move follows months of criticism from Pulte and Trump over interest rates.
Federal Housing Finance Agency (FHFA) Director Bill Pulte is requesting a congressional investigation into Federal Reserve Chair Jerome Powell.
The July 2 announcement first reported by HousingWire is an escalation of Pulte's ongoing battle with the Fed chair over the central bank's monetary policy decisions.
What FHFA Director Bill Pulte said: Pulte, who also serves as the chairman of the Freddie Mae and Fannie Mac boards, released a statement outlining his investigation request on X Wednesday morning.
"I am asking Congress to investigate Chairman Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed 'for cause,'" Pulte's statement began. "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'" — a claim he reiterated in a subsequent post.
His statement then referenced comments that Sen. Cynthia Lummis of Wyoming made to The New York Post after Powell testified before members of Congress last week.
"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,' and that 'this is typical of the mismanagement and 'don't bother me' attitude that Chair Powell has always shown,'" Pulte said.
"Chairman Powell needs to be investigated by Congress immediately," he concluded.
What the Fed said: The central bank declined to comment on Pulte's calls for a congressional investigation when reached by Real Estate News on July 2.
How we got here: Pulte's July 2 statement follows months of criticisms aimed at the Fed chair over the central bank's hesitance to lower short-term interest rates. The Fed last cut rates in December 2024. In explaining its rate cut freeze, the Fed has cited economic uncertainty and concerns that tariffs introduced in April by President Donald Trump could lead to inflation.
Though Powell has defended the Fed's monetary policy decisions and said future rate cuts will continue to depend on board members' review of economic data, Pulte and Trump have both urged Powell to resign.
Powell most recently addressed rate cut queries while attending a conference in Portugal earlier this week, during which he was asked if the Fed would have cut rates already if not for Trump's tariffs.
"In effect, we went on hold when we saw the size of the tariffs, and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs," he said, later adding that "as long as the U.S. economy is in solid shape, we think that the prudent thing to do is to wait and learn more, and see what those effects might be."