The overseer of Fannie Mae and Freddie Mac known as Wednesday for Congress to research Federal Reserve Chair Jerome Powell, accusing the central financial institution chief of mendacity to Congress.
In a Wednesday assertion, Federal Housing Finance Company (FHFA) Director Invoice Pulte accused Powell of mendacity to lawmakers throughout testimony earlier than the Senate Banking Committee final week.
Pulte mentioned Powell lied to members of the Banking panel when answering questions on renovations to the Fed’s Washington, D.C., headquarters, which have drawn criticism from Republican lawmakers.
When pressed by senators on the Fed’s alleged $2.5 billion renovation plan, Powell mentioned a number of the extra fanciful inclusions had been a part of older plans and have since been scrapped. Others prices, similar to repairing elevators that go on to board member’s workplaces and marble fixtures, had been fundamental maintenance of options which have at all times been within the constructing, he mentioned.
Pulte, nonetheless, accused Powell of intentionally deceptive senators with “deceptive” testimony and argued his statements had been sufficient to qualify as sufficient trigger to fireplace him.
“This is nothing short of malfeasance,” he mentioned.
Pulte has waged an unprecedented marketing campaign from the helm of 1 unbiased monetary regulatory company to oust the pinnacle of one other.
As head of the FHFA, Pulte is answerable for overseeing the monetary stability of mortgage organizations Fannie and Freddie and dealing with fellow regulators, similar to Powell, to guard People from main monetary shocks.
Pulte, nonetheless, has spent weeks following President Trump’s lead when making an attempt to drum up stress on Powell to resign over the Fed chief’s dealing with of rates of interest.
Trump and Pulte each declare the Fed is hurting the U.S. financial system by conserving its baseline rate of interest at a reasonable degree of 4.25 % to 4.5 %. Pulte has particularly pointed to slowness within the housing market, the place common 30-year mounted mortgage charges are near 7 %.
However housing rates of interest are simply considered one of many elements the Fed should think about when fulfilling its authorized obligation to maintain inflation steady and unemployment as little as doable.
Pulte mentioned his marketing campaign towards Powell is a pure extension of his job overseeing Fannie and Freddie, which package deal U.S. mortgages into funding merchandise.
“As Chairman of Fannie Mae and Freddie Mac, I can tell you that Jay Powell is hurting the housing market by being Too Late to lower rates. He needs to resign, effective immediately,” Pulte mentioned final week.
Pulte, the grandson of one of many nation’s most profitable housing builders, additionally has appreciable private wealth tied to the housing market and residential development. He disclosed greater than $80 million in property associated to housing, property administration, or air-con and heating firms in his 2025 monetary disclosure type.
