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The director of the Federal Housing Finance Agency continued his war on Federal Reserve Chairman Jerome Powell on Wednesday when he called on Congress to investigate Powell.
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In a statement posted on the social media platform X, Pulte asked Congress to look for political bias and deception from Powell. Pulte appeared to suggest that President Donald Trump would be justified in firing Powell, a move that is legally difficult.
The law that created the Fed says that members of its board of governors can only be removed before the end of their terms “for cause.”
Pulte apparently alluded to a recent report in the New York Post that an ongoing renovation of the Fed’s headquarters in Washington, D.C., was overly costly.
“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 wrote in his statement.
“Jerome Powell’s $2.5B in capitalizations of Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress,” Pulte said in the statement. “This is nothing short of malfeasance and is worthy of ‘for cause.’”
A spokesperson for the Federal Reserve Board declined to comment on Pulte’s allegations.
Powell, who Trump appointed to lead the Fed in 2017 during his first term as president, has said the central bank’s policies are based solely on economic data and its dual mandate of maximizing employment while keeping inflation in check.
Pulte’s statement wasn’t formally released on the FHFA website.
“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.’”
U.S. Federal Housing and the Fannie Mae and Freddie Mac Chairman Calls on Congress to Investigate Jerome Powell pic.twitter.com/E6P9MobJOa
— Pulte (@pulte) July 2, 2025
Pulte and Trump have ratcheted up their campaign to pressure Powell and the governors of the Federal Reserve Board to lower the federal funds rate or resign. The battle ramped up after the board held rates steady at its June 19 meeting.
Powell has said policymakers need more time to assess the impacts of the Trump administration’s policies in areas including tariffs, immigration, taxes and regulation.
Although the Fed has direct control over short-term interest rates, mortgage rates are determined by investor demand for mortgage-backed securities (MBS), which fund most home loans. The last time the Fed cut rates — by a full percentage point in September, November and December — mortgage rates went up.
Editor’s note: This story has been updated to note that the Federal Reserve Board declined to comment on Pulte’s allegations, and with additional context on Fed Chair Jerome Powell’s policy stance.
