FHFA Director Pulte Urges Fed Chair Powell to Lower Interest Rates

Federal Housing Finance Agency (FHFA) Director William Pulte has publicly urged Federal Reserve Chair Jerome Powell to cut interest rates, arguing that the housing market would improve as a result. Pulte’s call aligns with former President Donald Trump's persistent criticism of the Fed for not lowering rates faster to combat inflation, which has recently decreased closer to the Fed's 2% target. Despite inflation cooling, Powell has maintained a pause on rate cuts, citing economic uncertainty driven by trade policies and tariffs initiated during the Trump administration. Pulte and Trump contend that lowering rates would support housing affordability and economic growth, while Powell emphasizes caution due to ongoing risks from government policies and global economic conditions. Treasury Secretary Scott Bessent also highlighted concerns about raising mortgage rates if the government moves to release Fannie Mae and Freddie Mac from conservatorship, underscoring the sensitive balance policymakers face. Overall, the debate centers on whether maintaining or lowering interest rates best supports economic stability amid fluctuating inflation and trade-related uncertainties.