Federal Mortgage Regulator Bill Pulte Calls on Congress To Investigate Fed Chair Powell

Federal Housing Finance Administration Director Bill Pulte, the nation’s top mortgage regulator, has called for an immediate Congressional investigation into Federal Reserve Chair Jerome Powell.

“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,’” Pulte said in a statement on Wednesday.

Pulte in the statement accuses Powell of lying when questioned about the specifics of a $2.5 billion renovation of the Fed’s Washington D.C., headquarters, which Republican Sen. Tim Scott claimed added lavish amenities akin to the “Palace of Versailles.”

“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell insisted in his testimony. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”

Following that testimony, Sen. Cynthia Lummis, a Wyoming Republican, accused Powell of making factually inaccurate statements about the details of the renovation and contradicting planning documents for the project.

A spokesperson for the Fed declined to comment on Pulte’s call for a Congressional investigation when reached by Realtor.com®.

Pulte’s extraordinary move follows harsh public criticism of Powell from both Pulte and his boss, President Donald Trump, over the Fed’s reluctance to lower its benchmark interest rate.

The Fed has held its key rate steady in a range of 4.25% to 4.5% since December, leaving mortgage rates stuck in a fairly narrow band falling mostly between 6.6% and 7% since that time.

Trump, who promised lower mortgage rates on the campaign trail, has heaped furious blame on Powell, calling the Fed chair a “stupid person” for holding rates steady. Pulte has piled on in recent weeks, taking to social media to accuse Powell of political bias and call for his resignation.

Testifying in congressional hearings last week, Powell defended current interest rate levels by emphasizing the Fed’s dual mandate of maximum employment and price stability, insisting that political considerations can play no role in rate policy.

He argued that while inflation has come down significantly, it’s not yet consistently at the 2% target, and warned that tariffs could cause inflation to spike again this summer.

Although Pulte’s new call for a Congressional investigation of Powell is a dramatic escalation of the political rhetoric surrounding Fed policy, it may have little impact on rates when Fed policy makers meet later this month, says Realtor.com® Senior Economist Jake Krimmel.

“I do not expect this to have any bearing on Fed policy decisions. Every chance he gets, Chair Powell reiterates to policymakers, the press, and the public that the Fed is concerned only with achieving its dual mandate of stable prices and maximum employment,” says Krimmel.

“Over the past several years and again during his recent congressional testimony, Powell has been consistent with that messaging and appears wholly unwilling to entertain political questions or conversations,” he adds.

Key economic data due out before the Fed’s next rate announcement on July 30 include the monthly jobs report on Thursday, and consumer price index data on July 15.

Many of Trump’s pauses on reciprocal tariffs are also due to expire on July 9, making it a key deadline for negotiating new trade agreements and resolving uncertainty.

Financial markets currently predict at 76% chance that the Fed will leave its policy rate unchanged at the late-July meeting, according to the CME Group’s FedWatch tool.

Developing story, more to follow.