Federal Housing Finance Chief Calls On Powell To Lower Interest Rates: ‘The Housing Market Would Be In Much Better Shape’

Federal Housing Finance Agency (FHFA) Director William Pulte urged Federal Reserve Chair Jerome Powell to reinstate the central bank’s interest rate cuts.

What Happened: Pulte took to the social media platform X on Monday to express his stance. He posted, “Jay Powell needs to lower interest rates — enough is enough. President Trump has crushed Biden’s inflation, and there is no reason not to lower rates.”

This appeal aligns with President Donald Trump’s long-standing advocacy for interest rate reductions, particularly in the face of his trade war and new tariff policies.

Pulte believes that the housing market would greatly benefit from these rate cuts. He also mentioned that Trump’s trade policies and tariffs could lead many companies and business groups to increase their prices. Retailers are expected to be particularly affected, as indicated in the Fed’s last beige book.

The Fed had started to lower interest rates in the second half of the previous year, following a period of high rates due to post-pandemic inflation. However, the cuts were halted in January, with rates staying between 4.25 to 4.5% since then. Powell has attributed the economic uncertainty caused by Trump’s trade war as a reason for the pause.

SEE ALSO: Nvidia, AMD Could Stand To Gain Big Time As Japan Proposes $7 Billion Chip Deal In Trump Tariff Talks Amid China Export Curbs: Report

Why It Matters: Trump’s disapproval of Powell’s interest rate policies is no secret. During an April rally in Michigan, he went so far as to claim he understands interest rates better than the Fed chair himself.

Earlier this month, Vice President JD Vance also expressed dissatisfaction with Powell’s economic policies, particularly concerning inflation and trade agreements. “… I think he’s way too late in actually helping us fight back against some of these ridiculous trade deals that have stolen the wealth of the American people,” opined Vance.

Powell hinted at a possible shift in the Fed’s inflation strategy, following five years of economic upheaval. He stated that while the 2% inflation target will remain, other elements—such as wording on employment and inflation overshooting—may change. Powell emphasized the importance of maintaining stable inflation expectations, saying, “We remain fully committed to the 2% target today.”

Image via Shutterstock

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

Source link