The Trump backs calls for Powell resignation movement gained traction this week as Bill Pulte, director of the Federal Housing Finance Agency (FHFA), publicly urged Jerome Powell to step down. Pulte’s comments followed a series of attacks on Powell, echoing President Donald Trump’s sharp criticism of the Federal Reserve Chair.
On Friday, Pulte argued that Powell’s interest rates remain too high. He claimed these rates do not reflect the positive economic impact of Trump’s administration. Pulte bluntly stated, “Fed Chair Jay Powell either lower the rates or he needs to resign.”
As the overseer of housing finance giants Fannie Mae and Freddie Mac, Pulte emphasized the harm high rates cause the housing market. He explained that lower interest rates reduce the cost of 30-year mortgages, benefiting homebuyers and the economy alike.
Earlier in the week, Pulte repeated his demands on social media. He said, “Jay Powell is hurting the housing market by being too late to lower rates. He needs to resign, effective immediately.”
Pulte’s vocal stance aligns closely with Trump’s ongoing campaign against the Fed’s current policies. The Federal Reserve held interest rates steady for the fourth meeting in a row this Wednesday. Trump responded with outrage, even suggesting he might consider replacing Powell. He also called Powell “a stupid person” in a social media post.
Support for Powell’s resignation extends beyond Trump and Pulte. Senators Rick Scott and Tommy Tuberville have joined calls for the Fed Chair to step down. However, it remains unclear if Pulte has official backing from the White House for his public campaign against Powell.
William English, a former top Federal Reserve official and current Yale finance professor, called this public pressure unusual. He also noted that even a Fed Chair appointed by Trump may struggle to lower rates, as many voting members favor steady policy.
Meanwhile, economist Claudia Sahm pointed out that presidential criticism of the Fed Chair is common but usually stays behind closed doors. The public nature of these attacks signals rising political tensions affecting the central bank’s independence.
Overall, the Trump backs calls for Powell resignation movement highlights growing friction between political leaders and the Federal Reserve. This conflict adds uncertainty to the business environment, especially within the housing market and broader economy.
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