Just hours after William J. Pulte, Chair of the Federal Housing Finance Agency (FHFA), and Fannie Mae and Freddie Mac, called on Congress to open an investigation on Federal Reserve Chair Jerome Powell, U.S. President Donald Trump on Wednesday asked Powell to tender his resignation over past comments to lawmakers.
Trump took to Truth Social using his nickname for Powell: “‘Too Late’ should resign immediately!!!”
Over the past few weeks, Pulte and Trump have both targeted 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.
On Wednesday, Pulte intensified his criticism of Powell, seeking a Congressional inquiry into 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.’”
Pulte accused Powell of lying to Congress after he denied that a $2.5 billion renovation 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 an official FHFA statement.
Powell’s testimony before the Senate Banking Committee sparked outrage because the renovation plans contradicted the Fed’s own planning documents that were signed off by U.S. government in 2021, and the plans had not been revised since. Other costs, such as elevator repairs that travel directly to Federal Reserve Board members’ offices and marble fixtures, were part of basic upkeep of that had always been in the building, Powell said.
President Trump has expressed frustration with the Fed Chair for his refusal to lower interest rates, which he has said was costing the U.S. a fortune.
Earlier this week, Trump sent a note to Powell via Truth Social highlighting how other countries around the world have lower interest rates compared to the U.S.
“Jerome ‘Too Late’ Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States. They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED—And continue to do so,” said Trump in his post. “If they were doing their job properly, our Country would be saving Trillions of Dollars in Interest Cost. The Board just sits there and watches, so they are equally to blame. We should be paying 1% Interest, or better!”
Treasury Secretary Scott Bessent, who many feel is the heir apparent to replace Powell as Fed Chair, was asked by FOX Business’ Maria Bartiromo on “Mornings with Maria” about the Trump-Powell issue. Bessent responded that the Trump administration has been resolute in “trying to get waste, fraud and abuse out of the system.”
Bessent continued, “So, is it healthy for the Fed to get their spending under control, just like everybody else, in this time of belt-tightening and right-sizing the federal government? Sure. I want to see the Fed right-size their budget.”
The President does not have direct control over the Federal Reserve’s policy decisions, but does have 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.
