US Fed Housing Chair Welcomes Reports of Jerome Powell’s Potential Resignation
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Trump-Powell Tensions Reignite Amid Rate Cut Disputes
By TRH Global Affairs Desk
NEW DELHI, July 11, 2025 — In a significant public statement that adds fuel to the ongoing speculation about Federal Reserve Chair Jerome Powell’s future, William J. Pulte, Chairman of the Board of Fannie Mae and Freddie Mac, expressed support for Powell’s potential resignation, saying it would be “the right direction for America.”
The U.S. Federal Housing Finance Agency (FHFA) released the statement on Friday following media reports that Powell is considering stepping down before his term expires in 2026.
“I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right direction for America, and the economy will boom,” Pulte said in the official news release.
This endorsement comes amid renewed pressure from US President Donald Trump, who has repeatedly slammed Powell for not aggressively cutting interest rates to spur economic growth. Trump has made Powell a regular target, accusing the Fed of “killing growth” and being “out of touch” with Main Street needs.
🔥 Trump vs. Powell: A History of Clashes
The feud between Trump and Powell dates back to Trump’s first term when he appointed Powell as Fed Chair in 2018 but quickly turned on him after the Fed raised rates in 2019. During and after the pandemic, Trump pressured Powell to adopt ultra-loose monetary policies, often calling him a “disaster” for the US economy.
Trump reignited his criticism in his second term, calling Powell “the biggest obstacle to America’s comeback.” He has also suggested that he would overhaul the Federal Reserve’s leadership structure to make it more “responsive to the needs of real Americans.”
💵 Market Implications
Investors are closely watching the Fed Chair speculation. A Powell resignation could signal a shift toward a more dovish Fed, potentially paving the way for interest rate cuts. That prospect is being welcomed by housing and mortgage markets, which remain under pressure from elevated rates.
The endorsement from Pulte, whose agency oversees entities that back over $8.5 trillion in US mortgage funding, reflects the housing sector’s hope for policy easing.
📈 Political and Economic Stakes
With the US economy facing mixed signals—moderate inflation, slowing job growth, and stubbornly high borrowing costs—leadership at the Fed remains a crucial variable. Trump’s allies argue that Powell has been too slow to adapt to changing economic conditions and too focused on legacy inflationary concerns.
Should Powell resign, it would mark one of the most consequential shifts in US monetary policy leadership in decades, potentially impacting markets, mortgage rates, and global investor confidence.
As of now, the Federal Reserve has not issued any formal comment on Powell’s reported intentions. Powell’s second term as Fed Chair is due to end in 2026. Trump has hinted at replacing Powell with a “pro-growth” figure. Wall Street responded to the news with cautious optimism, with bank and real estate stocks ticking higher.
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