Federal Housing Finance Agency (FHFA) Director Bill Pulte toured President Trump’s under-construction headquarters, but the real focus was on Federal Reserve Chairman Jerome Powell’s future. While Trump toned down his calls for Powell’s resignation, Pulte increased the pressure.
“I remain optimistic that Jerome Powell will do the right thing,” said Pulte in a social media post, likely referring to the FOMC meeting on July 29-30.
Powell had previously expressed support for lowering interest rates and was even rumored to be stepping down despite no official confirmation. However, recent reports suggest he may serve out his term to preserve Fed independence.
“I’ve asked him, and he says no,” said South Dakota Senator Mike Rounds, who questioned Powell’s commitment to maintaining the Federal Reserve’s independence from politics.
The Fed is likely to keep interest rates steady next week, according to a 97.4% probability from CME’s FedWatch tool.
Source: https://www.tipranks.com/news/pulte-pressures-powell-to-slash-rates-as-early-as-next-week