The United States Federal Housing chairman, William J. Pulte, who also chairs Fannie Mae and Freddie Mac, is calling for Congress to investigate Fed Chair Jerome Powell. In an official statement issued Wednesday, Pulte wrote, “Chairman Powell needs to be investigated by Congress immediately.”
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,” the statement read. “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.'”
“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 the mismanagement and ‘don’t bother me’ attitude that Chair Powell has always show,'” Pulte added.
Fed Chair Powell Continues to Face Scrutiny, Termination Threats
The Federal Reserve chairman has faced plenty of scrutiny over the last year over a variety of issues. Most notably, the Trump administration has bashed Jerome Powell and the Fed over not rushing to reverse all of the interest rate hikes executed during the COVID-19 pandemic. The Fed has yet to cut rates this year, holding the federal funds rate target range at 4.25%-4.50%. However, he and other experts have hinted at 1-2 cuts coming before 2025 ends, but the central bank isn’t rushing a decision. The US inflation rate is still up in the last few months, albeit below economists’ expectations.
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Furthermore, just a few months into his sitting as US President, Trump looked into removing Powell from his post as Fed chairman. Back in April, economic advisor Kevin Hassett told reporters, “The president and his team will continue to study that matter,” according to a Reuters report. Trump has accused Powell of “playing politics” in his tirades against the chairman. Additionally, Trump said the agency, under Powell’s leadership, was “always too late and wrong,” while claiming the country was “getting rich on tariffs.” Meanwhile, Powell has continued the agency’s wait-and-see approach to handling inflation and further interest rate cuts.
Congress has yet to respond to the declaration to investigate Fed Chair Powell.