William J. Pulte, Chair of the Federal Housing Finance Agency (FHFA), and Fannie Mae and Freddie Mac, has called on Congress to open an investigation on Federal Reserve Chair Jerome Powell.
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and deceptive Senate testimony, which is enough to be removed ‘for cause,'” said FHFA Chair Pulte in a social media post on X. “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.'”
Over the past few weeks, Pulte has followed in the footsteps of President Trump in targeting Powell, criticizing the Federal Reserve Chair in a series of strongly worded social media posts. Both Trump and Pulte are placing blame on the Fed Chair for not lowering rates to ease the nation’s current economic turmoil.
Pulte intensified his criticism of Powell this past week, first demanding his resignation and then scolding him in a post.
“Jerome Powell’s tenure as Fed Chair has been a masterclass in economic Mismanagement,” said Pulte in a July 1 post. “Under Biden, his Reckless money-printing fueled 40-year-high inflation, doubled mortgage payments, and triggered historic bank collapses like SVB—leaving retirees and homeowners holding the bag.”
Pulte continued: “I urge Jerome Powell to resign, quickly. Mr. Too Late is too late on his resignation.”
Specifically, Pulte called out Powell for lying to Congress after he denied that a $2.5 billion revamp of the Fed’s D.C. headquarters will load the facility with lavish amenities.
“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 mismanagement and don’t bother me attitude that Chair Powell has always shown,'” said Pulte in a statement.
During Powell’s appearance before the Senate Banking Committee, Sen. Tim Scott, Chairman of the United States Senate Committee on Banking, Housing, and Urban Affairs, compared the upgrades to the Fed’s HQ to the “Palace of Versailles.”
“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell insisted. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens,” Powell said during the grilling by lawmakers.
According to a report in the New York Post, Powell’s testimony sparked outrage because the renovation plans contradicted the Fed’s own planning documents that were signed off by U.S. government in 2021, and these plans have not been revised since.
Appearing on Bloomberg Radio Wednesday, Ohio Rep. Jim Jordan from Ohio had this to say when asked about investigating Fed Chair Powell: “We’ll take a look at that. Part of our part of our constitutional duties is to do oversight of the Executive Branch and the Judicial Branch, as well. We will take a look at all that. But yeah, oversight is an important part of our constitutional responsibilities.”
The Federal Reserve Open Market Committee (FOMC) recently concluded its June meeting, and decided to hold the federal funds rate steady at 4.25%-4.50%, marking the fourth consecutive meeting that the Fed held rates at 4.25%-4.50%.
Prior to the Fed’s announcement, Powell met with President Donald Trump at the White House to discuss the state of the nation’s economy, employment, and inflation.
“Although swings in net exports have affected the data, recent indicators suggest that economic activity has continued to expand at a solid pace,” said the FOMC in a statement after the White House meeting. “The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid. Inflation remains somewhat elevated.”
White House Press Secretary Karoline Leavitt confirmed Powell’s meeting with Trump, telling reporters that the Fed’s summary was correct, but noting that Trump pushed Powell to lower rates.
“The President did say that he believes the Fed Chair is making a mistake by not lowering interest rates, which is putting us at an economic disadvantage to China and other countries. The President’s been very vocal about that, both publicly and now I can reveal privately as well,” Leavitt said in a briefing with the press.
The President does not have direct control over the Federal Reserve’s policy decisions, but does have some influence. The President can nominate and appoint members of the Federal Reserve Board of Governors, including the Chair, which can influence the overall direction of the Fed, and can also voice their opinions about monetary policy. The President selects one member of the Board of Governors to serve as Chair of the Board, who also serves as the FOMC Chair.
The FOMC, which makes the actual monetary policy decisions, is comprised of all seven governors and five of the 12 regional Federal Reserve Bank Presidents. While the chair has one vote like the other governors, the structure is designed to prevent one individual, including the president, from dictating decisions and policies.
