Fannie, Freddie oversight chief to Powell: Cut rates or resign

The head of the federal agency responsible for overseeing Fannie Mae and Freddie Mac called Wednesday for Federal Reserve Chair Jerome Powell to resign if the central bank did not cut rates that day.

In a Wednesday post on social media, Federal Housing Finance Agency (FHFA) Director William Pulte accused Powell of refusing to do his job by not cutting interest rates at President Trump's request.

Both the Fed and FHFA are independent federal agencies charged with overseeing critically important parts of the U.S. financial system. Congress designed those agencies to be immune from the political pressures exhibited by both Trump and Pulte.

"Because President Trump has crushed inflation, Fed Chairman Jerome Powell needs to lower interest rates today, and if not Chairman Powell needs to resign, immediately. Fannie Mae and Freddie Mac can help so many more Americans if Chair Powell will just do his job and lower rates," Pulte wrote on social platform X, just half an hour before the Fed was expected to announce it would keep rates unchanged.

The Fed, as anticipated, did not cut or raise rates.

As FHFA director, Pulte is responsible for overseeing Fannie Mae and Freddie Mac — two companies under federal conservatorship that package U.S. mortgages into investment products. Both companies have been under control of the federal government since the collapse of the housing market during the 2007-08 financial crisis.

By attacking Powell, Pulte has plunged himself and his agency into a political battle with severe financial implications.

Trump has threatened to fire Powell frequently throughout his two presidential terms, even though federal law prohibits him from doing so in all but extreme circumstances. Attempting to fire the Fed chief could also cause a panic in financial markets, a risk the president has acknowledged when discussing his plans for the Fed.

Even so, Trump suggested making a run at Powell as recently as last week, and mused Wednesday about nominating himself to the Fed.

Powell reiterated Wednesday that the Fed prefers to keep rates steady given the high level of uncertainty created by Trump's trade policy and the relative strength of the economy despite those risks.

The Fed is obligated under federal law to set interest rates in a way that preserves the proper balance in between unemployment and inflation.

But Pulte claimed Wednesday that Powell and the Fed should be setting interest rates with the health of the housing market in mind.

"Funny thing is Jay Powell is talking right now about the housing market - he has no clue what he can do for the housing market. And he’s not listening to the people who help lead the housing market. Too Late needs to RESIGN," Pulte posted, referring to Powell with Trump's nickname for the Fed chair.

Powell has dismissed the president’s previous attacks and said he would not leave his position before the end of his term.

With less than a year left into Powell's stint as Fed chair, Trump and his advisors are expected to nominate his replacement before the end of 2025.

Updated at 3:03 p.m. EDT