Fannie Mae chief Pulte sends out savage one-word message to Fed’s Powell
The housing market professional didn’t mince words.
There’s installing tension in Washington, D.C. over the Federal Reserve’s interest rate policy. After cutting interest rates by 1% late last year, Fed Chairman Jerome Powell has taken a different tack in 2025, holding interest rates stable, and frustrating many, including President Donald Trump, who desires rate cuts now. Concerns about tariffs potentially causing inflation to rise have put Fed Chair Powell in a quandary, as rate cuts to stimulate the economy could fuel inflation this year.
Fed Chair Powell argues for a cautious approach, citing historically low unemployment and an economy that, despite some concerning indicators, is still expected to grow by 3% this quarter.
Bill Pulte criticizes Powell’s interest rate pause, advocating for immediate rate cuts to lower mortgage rates and bolster the housing market. Powell’s decision to maintain interest rates at 4.25% to 4.50% has drawn sharp criticism for potentially impacting mortgage rates, which have surged from 2.7% to 6.8% since 2021.
In April, the average price of a new home surpassed $407,000, a significant increase from $310,000 five years ago.
