Washington’s top housing regulator is escalating his fight against Federal Reserve Chair Jerome Powell, calling on Congress to investigate the central banking chief.
Federal Housing Finance Agency Director Bill Pulte, who has increasingly complained that high borrowing costs are damaging the housing market, pressed lawmakers on Wednesday to probe Powell’s alleged “political bias” as well as his recent Senate testimony about the renovation of the Fed’s headquarters. Pulte claimed in a statement that Powell lied to lawmakers last week in his characterization of upgrades at the nearly century-old headquarters, which Powell said was in need of “serious renovation.”
“This is nothing short of malfeasance and is worthy of ‘for cause’” removal, Pulte said in the statement, which was shared by his X account. “Chairman Powell needs to be investigated by Congress immediately.”
US President Trump on Wednesday called for Federal Reserve Chair Jerome Powell to resign after the overseer of Fannie Mae and Freddie Mac called for Congress to investigate Powell over past comments to lawmakers.
“‘Too Late’ should resign immediately!!!” Trump posted on Truth Social, using his nickname for Powell.
Pulte’s attacks have echoed President Donald Trump’s own criticism of the Fed chair, whom he has taken to calling “Too Late” in lowering interest rates. Earlier this week, the president sent a handwritten note to Powell saying, “You have cost the USA a fortune — and continue to do so” while noting that interest rates in the U.S. remain higher than in many other major economies.
The focus on the Fed building renovations is a new front in the administration’s attacks on Powell. The Fed leader was asked at a hearing by Senate Banking Chair Tim Scott about the project after a New York Post article characterized it as akin to the “Palace of Versailles.”
According to plans submitted to the National Capital Planning Commission, the project is designed to upgrade the headquarters and a nearby building purchased by the Fed, as well as to consolidate workspace for central bank employees so the institution can get rid of some off-site leases.
“There’s no VIP dining room,” Powell told senators. “There’s no new marble. There are no special elevators. There are no new water features. There’s no beehives, and there’s no roof terrace gardens.”
At least one of those statements is debatable. According to the documents submitted to the NCPC, as of 2021, the central bank planned to have “two pairs of vegetated roof spaces” for the finished headquarters, although only one of those pairs were planned as an “occupiable space” for building users. The other pair will only be accessible for maintenance, according to the document.
“Maximum occupiable space is not planned to exceed 735 [square feet] per terrace,” it said. The second building under renovation, labeled as “FRB-East” in the proposal, was also intended to have a pair of occupiable roof spaces, as of that time.
The Fed declined to comment. It was not clear who Pulte sent the statement to on Capitol Hill. An FHFA spokesperson did not respond to a message seeking clarification.
Pulte, a one-time private equity executive and prolific poster on X, has been waging a social-media crusade against Powell in recent weeks over the central bank’s reluctance to slash borrowing costs.
His missives on Powell are unusually direct attacks by one regulatory head on another. The two men both sit on a panel called the Financial Stability Oversight Council, which is designed to police risks in the financial system.
Trump, who appointed Powell as Fed chair, told the central bank chief in his note, “You should lower the rate — by a lot! Hundreds of billions of dollars being lost!”
Despite the pressure, Powell and the Fed have kept interest rates steady — in part over lingering questions about what the White House’s tariffs will do for inflation in the months ahead.
Powell did not dismiss the possibility of a rate cut in July while speaking Tuesday at an event in Portugal, adding that most of the Fed board’s members expect borrowing costs to come down at some point this year. But he reiterated that the decision will ultimately hinge on incoming economic data.
