Federal Housing Finance Agency Director Bill Pulte toured the Fed’s under-construction headquarters yesterday with President Trump. While Trump eased up on his calls for Powell to resign, Pulte has upped the ante.
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“I remain optimistic Jerome Powell will do the right thing, and as early as next week,” said Pulte in an X post on Friday, likely a reference to the Federal Open Market Committee (FOMC) meeting on July 29-30.
Pulte previously called for the Fed to lower rates and a congressional investigation of Powell over the Fed’s $2.5 billion renovation of its Washington, D.C. headquarters.
Will Powell Step Down?
Earlier this month, Pulte noted that he was “encouraged” by reports that Powell would step down despite no confirmed reports on the subject. This morning, CNN reported that the Fed Chair had confided in close contacts that he would serve the remainder of his term in order to retain Fed independence from political bias. Powell’s term ends in May 2026.
“I’ve asked him, and he says no, that would reduce the independence of the Federal Reserve,” said South Dakota GOP Senator Mike Rounds.
Additionally, the Fed will likely keep rates steady next week. CME’s FedWatch tool assigns 97.4% odds of the rate staying between 4.25% and 4.50%.
Track the federal funds rate and other key economic metrics with TipRanks’ Economic Indicators Dashboard.
