It's Time for Powell to Step Down According to Bill Pulte
FHFA Director Demands Resignation of Federal Chair: "Powell is gravely wronging this Nation"
Bill Pulte, head honcho at the Federal Housing Finance Agency, aims his sights on Jerome Powell, the chairman of the Federal Reserve System's board of governors.
Take a seat, Jerome. You've got some explaining to do! That's right, Pulte is calling for your head after President Trump's price-smashing moves on inflation. The man needs to lower those dang interest rates posthaste, or Powell can kiss his job goodbye, buddy!
Now, you might think we've been here before, but let me tell you, this time's different. No more talking in circles, no more wishy-washy support for Trump and his calls for interest rate cuts. This week, like many times before, Powell ignored the call, and their demands went unanswered, just like a stubborn cat with a bald spot that refuses to shake the pesky fly.
In a post on X, Pulte put it straight: "Fannie Mae and Freddie Mac can bail out so many more Americans if Chairman Powell would just get his act together and cut those rates!"
If you're thinking this is déjà vu, you're right! Both Pulte and Trump have been beating that drum loud, boasting about cutting interest rates. But they ain't listening, or they just don't care, which is a far cry from what our country needs, my friends.
In a statement issued Wednesday, the Fed's stance remained resolute, much like the Man with the Iron Fist. The Federal Open Market Committee decided "to maintain the target range for the federal funds rate at 4-1/4 to 4-1/2 percent."
Trump, known for his merciless barbs and constant chirping, didn't hold back, taking to Truth Social to chime in, scoffing at Powell, asking: "Too Late-Powell is the WORST. A real dummy, who's costing America $Billions!"
Powell's days may be numbered, according to Pulte, who's beefing up the rhetoric in their ongoing crusade against the recalcitrant Fed chair. "It's so reckless to keep rates where they are," he said in another X post. "Inflation is down. Mortgage rates, and interest rates, need to come down. Jerome Powell is doing a great injustice to this Country."
Adding fuel to the fire, Pulte took aim in another post, declaring: "Jerome Powell is the chief reason for the housing supply crisis plaguing this great nation. By ignoring the obvious and keeping rates high, he's trapping homeowners in low-rate mortgages and stifling existing home sales, intensifying the housing drought."
Even though Trump and Pulte are ramping up the pressure for rate cuts, it seems economist Peter Schiff isn't buying it. Schiff thinks interest rates aren't low enough, as evidenced by consumer and government borrowing, a low savings rate, and the sky-high price of gold. Those are all signs, he argues, that interest rates are too low.
As the drama unfolds, the top contenders to replace Fed Chair Powell include heavyweights like Kevin Warsh, Christopher Waller, Scott Bessent, and Judy Shelton, among others. Some critics argue that Trump's attacks on Powell are all about setting up a scapegoat in case of a recession. But panelists expect Trump to announce Powell's successor soon, with candidates like Warsh and Bessent being tipped as strong prospects.
In conclusion, while Trump continues to call for Jerome Powell's ousting, there's a lot of caution about the potential risks of undermining Fed independence and market confidence. The key question remains: Will Trump give in to the pressure, or will Powell ultimately get his act together and cut those rates? Only time will tell. Stay tuned, folks, because this ride isn't over yet!
- Bill Pulte, head of the Federal Housing Finance Agency, is urging Federal Reserve Chairman Jerome Powell to reduce interest rates, citing President Trump's concerns about inflation.
- In response to Powell's refusal to lower interest rates, Pulte has proposed that mortgage rates need to be reduced to help bail out more Americans.
- While critics claim that Trump's attacks on Powell are politically motivated, potential candidates to replace Powell include Kevin Warsh, Christopher Waller, Scott Bessent, and Judy Shelton.
- The ongoing debate between Trump and Powell is causing upheaval in the economy, with the housing market, asset prices, and general news being significantly affected.
- Economist Peter Schiff, however, believes that current interest rates are not low enough, highlighting factors such as consumer and government borrowing, a low savings rate, and the high price of gold.
- The outcome of the ongoing dispute between Trump and Powell is uncertain, with the fight for Fed independence and market confidence being a key concern for many economists and observers.
