Pulte urges Congress to investigate Powell

U.S. Federal Housing Director Bill Pulte is asking Congress to investigate Federal Reserve Chairman Jerome Powell, in a stark escalation of the official's campaign against the central bank head. 

In a statement posted to X on Wednesday, the chairman of Fannie Mae and Freddie Mac cited Powell's statements in a recent Senate committee appearance as reason for both a probe and removal "for cause."

"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,'" the statement read. "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 continued to focus on the renovations of the bank's headquarters, and called for an immediate investigation by lawmakers. 

"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.'"

In a Senate Banking Committee hearing last month, Senate Banking Committee Chairman Tim Scott, R-S.C., grilled Powell on the massive, growing price tag of renovating the Federal Reserve headquarters. In that hearing, Powell called some of the reporting of the renovations "flatly misleading."

Pulte's calls for Powell's resignation reach a louder volume

Pulte, head of the government-sponsored enterprise regulator formerly known as the Federal Housing Finance Agency, has amped up his critiques of Powell after the Federal Open Market Committee left short-term rates unchanged last month. The criticisms, shared by President Trump, suggest inflation has fallen far enough to allow for a rate reduction. 

While some market-watchers have predicted two rate cuts before the year's end, others believe the Fed could stand pat for the remainder of 2025. A lower Federal Funds rate could spur lower mortgage rates and revive a relatively slow housing market. 

Powell, following last month's FOMC meeting, said the Fed needed to restore price stability "in a sustainable way" and create a strong labor market. 

The U.S. Federal Housing chief, a prolific social media user, has posted frequently about Powell in the past few weeks, calling the Fed chair a "moron" regarding his inflation assessment in another X post Monday. 

Pulte has had a busy first few months in office in angling the GSEs for a potential shake-up, while targeting industry issues like fraud and credit scoring.