Federal Housing Finance Agency (FHFA) Director Bill Pulte has continued to criticize Fed Chair Jerome Powell for keeping the federal funds rate (FFR) unchanged in 2025, this time accusing him of perpetrating long-term damage to the housing industry.
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“By keeping interest rates high, Jerome Powell is creating longer term housing issues,” Pulte said in an X post on Tuesday.
Mortgage Costs Remain High as Powell Faces Criticism
Pulte is likely suggesting that high interest rates hamper affordability for homebuyers through higher mortgage rates. The 30-year fixed-rate mortgage is indirectly influenced by the FFR through its link to long-term bond yields, such as the 10-year Treasury. However, the relationship isn’t 1:1, as long-term yields are also impacted by other factors, such as inflation expectations and the health of the economy.
Earlier this month, Pulte said that the cost of a home mortgage is double what it was during President Trump’s first term, pressuring Powell to lower interest rates immediately. He also accused Powell of “hurting the housing market.”
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