Trump-appointed FHFA director advocates for rate cuts from Fed Chair Powell: "That's it, it's time to stop"
The Federal Reserve Chair, Jerome Powell, has discussed the potential adjustment of the central bank's policy framework to account for increasing volatility in inflation and more frequent supply shocks.
William Pulte, the Director of the Federal Housing Finance Agency and a former nominee under President Donald Trump, has urged Powell to consider reducing interest rates, stating that the housing market would benefit from such a move. In a recent post on X, Pulte contended, "Jay Powell needs to lower interest rates - enough is enough. The housing market would be in much better shape if Chairman Powell does this."
Trump has persistently called for rate cuts from Powell, with the former president highlighting the impact of inflation on the economy in a Truth Social post earlier this month. During his first term, Trump nominated Powell to serve as chair of the Federal Reserve.
While Powell has maintained the Federal Reserve's commitment to its current policy stance, he emphasized that any decisions regarding interest rate adjustments will be guided by economic data and not influenced by political pressures. The Fed has previously decreased the target range for the federal funds rate in December 2024, following Trump's election victory but before he assumed office.
Recent market analysis suggests that the U.S. deficit is becoming unsustainable as demand for Treasury bonds weakens. This is not directly related to the current discourse on interest rates or the Fed's policy framework but is an ongoing concern for financial markets.
In other news, Powell addressed Princeton University's graduating class of 2025, encouraging students to take risks and show initiative, emphasizing the importance of public service.
[1] Powell Suggests Potential Adjustments to Federal Reserve's Policy Framework. (2025). MarketWatch.[2] Powell Reiterates Fed Focus on Inflation and Unemployment Indicators. (2025). Reuters.[3] Powell Discusses Inflation, Supply Shocks, and Fed's Policy Framework. (2025). Associated Press.[4] Trump Urges Powell to Lower Interest Rates, Cites Housing Market and Inflation. (2025). CNBC.[5] Powell Emphasizes Non-Political Analysis Guiding Fed's Decisions. (2025). Wall Street Journal.
- In light of the growing volatility in inflation and frequent supply shocks, Jerome Powell, the Federal Reserve Chair, is considering adjustments to the central bank's policy framework.
- Trump, the former president, has repeatedly pressed Powell to lower interest rates, citing the housing market and inflation as his main concerns.
- While discussing inflation, supply shocks, and the Fed's policy framework, Powell reaffirmed that economic data, not political pressures, would guide any decisions regarding interest rate adjustments.
- William Pulte, the Director of the Federal Housing Finance Agency, has urged Powell to consider reducing interest rates, arguing that such a move would improve the housing market.
- Economic analysts recently suggested that the U.S. deficit is becoming unsustainable, with demand for Treasury bonds weakening.
- Away from the interest rate debate, Powell addressed Princeton University's graduating class of 2025, encouraging students to take risks, show initiative, and consider public service as a worthy pursuit.
