Trump, Pulte Call For Federal Investigation Into Jerome Powell

Trump expressed on Truth Social, “‘Too Late’ should resign immediately!!!” using his nickname for Powell.

Additionally, Trump referenced a Bloomberg article detailing the allegations made by Federal Housing Finance Agency Director Bill Pulte, who asserts that Powell lied under oath during a Senate Banking Committee hearing last week.

According to Politico, Pulte stated that Powell misled lawmakers regarding the Fed’s contentious $2.5 billion renovation plan for its headquarters in Washington, D.C.

When questioned by senators, Powell claimed that the more extreme renovation items were part of older plans that had already been abandoned. He maintained that other costs, such as upgrading elevators to board members’ offices and replacing marble fixtures, were merely necessary for the upkeep of the existing structure.

Pulte was not convinced.

He accused Powell of providing “deceptive” testimony and asserted that the Fed chair’s responses warranted termination for cause.

Pulte remarked in a statement on X, “This is nothing short of malfeasance and is worthy of ‘for cause’ removal. Chairman Powell needs to be investigated by Congress immediately.”

Pulte, who has consistently cautioned that the Fed’s elevated interest rates are detrimental to the housing market, is also calling for an investigation into what he describes as Powell’s “political bias.” He alleges that Powell intentionally minimized the extent of the Fed’s renovation project, which Powell had previously characterized as a “serious” and essential overhaul of the nearly century-old facility.

In April, President Trump intensified his criticism of Federal Reserve Chair Jerome Powell, advocating for his “termination” due to the Fed’s failure to reduce interest rates swiftly enough.

His comments were made one day following the central bank governor’s stern warning regarding the effects of Trump’s extensive tariffs on the economy.

In a post on social media, Trump criticized Powell, asserting that the US central bank is lagging behind its European counterpart. Later that same day, the European Central Bank revealed that it would reduce interest rates for the seventh time within a year.

“Jerome Powell of the Fed, who is consistently TOO LATE AND INCORRECT, issued a report yesterday that was yet another, and typical, complete ‘mess!’ Trump remarked. “Powell’s dismissal cannot come soon enough!”

Powell indicated that the Trump administration has introduced “very fundamental policy changes,” including his sweeping tariffs that are “significantly larger than expected.”

Powell was appointed as Fed Chair by Trump in 2018 and was reappointed by President Joe Biden in 2021. His current term is set to conclude in May 2026.

Trump has frequently threatened to remove Powell from his role, and his criticism of the Fed chair dates back to 2018, when Powell assumed control of the world’s most influential central bank.

The Fed raised interest rates several times that year, worried that a historically tight job market would lead to increased inflation. In 2019, Trump even labeled Powell as “the enemy.”

In March 2020, Trump informed reporters that he had the “right to remove (Powell) as chairman” and that “he has, thus far, made numerous poor decisions, in my view,” following a market crash due to the pandemic. However, he did commend Powell for lowering interest rates to zero to prevent an economic catastrophe.

In a July interview with Bloomberg, Trump expressed that he would not reappoint Powell for a third term and would permit him to complete his term, “especially if I believed he was acting correctly.”

Powell has firmly stated that the dismissal of a Fed chair is “not allowed under the law,” and that he intends to fulfill the entirety of his term.