Trump gets magnetic backup in war with Fed’s Jerome Powell

President Donald Trump’s extraordinary offensive against Fed Chairman Jerome Powell is withdrawing another administration official.

Federal Housing Finance Director Bill Pulte pushed Powell to resign in a Fox Business interview on Friday. It follows a series of attacks by Pulte on the head of social media at the central bank.

“[Powell] “There are still interest rates too high, and they don’t reflect the great work that President Trump has done. Fed Chairman Jay Powell lowered interest rates, or he needs to resign,” Pat said.

Pat, who runs housing giants Fannie Mae and Freddy Mike, in his case, cited a weak housing market with lower prices. Lower interest rates reduce the cost of a 30-year mortgage.

“As the chairman of Fannie Mae and Freddie Mac, I can tell you that Jay Powell was hurting the housing market by getting lowered rates. He needed to quit immediately,” Pulte said in an article published on Wednesday.

Poulter’s attack escalated him and Trump’s attack on the Fed, the independent central bank responsible for setting interest rates. The Fed maintained its benchmark interest rate for its fourth straight meeting on Wednesday. This development sparked strong opposition from Trump, who pondered himself as the chairman of the Federal Reserve. The president also called Powell a “stupid person” on the same day.

Other tough conservatives, such as Sens in Florida. RickScott and Alabama’s Tommy Tuberville also called on Powell to resign.

It is unclear whether former private equity executive Pulte received a green light from the White House to launch a trump card-like offense against the Fed. The White House and FHFA did not respond to requests for comment. A Fed spokesman declined to comment.

William English, a former Fed official and now a finance professor at Yale University, called it an executive official publicly criticizing the Fed for being “very unusual.” However, this may not be unprecedented.

English even appointed Trump-friendly Fed chairpersons, which may not be enough to secure lower interest rates. Powell’s term ends in May 2026, with many of the 12 voting members of the Federal Open Market Committee remaining in their posts.

“The people who vote on policies next spring will be roughly the same as those who voted this week to keep policies unchanged,” he said. “So even a chairman who wants to meet the president’s policy more easily can be difficult to deliver.”

Other observers responded to concerns that the Fed can maintain its political independence. “It’s absolutely new to the president’s criticism of what the Fed chairman does,” said New Century Advisors chief economist and a former Fed economist. “But usually, these criticisms are closed.”