The newly minted head of the Federal Housing Finance Agency took to social media on Tuesday to press Federal Reserve Chair Jerome Powell to cut rates.
Bill Pulte oversees the FHFA, which has conservatorship over Fannie Mae and Freddie Mac — government-sponsored enterprises that buy mortgages from lenders and package them into securities sold to investors.
"Jay Powell needs to lower interest rates — enough is enough," Pulte said on X. "The housing market would be in much better shape if Chairman Powell does this."
A Trump nominee, Pulte stepped into his role in March. He has led a wave of change within the past two months, including imposing a return-to-work mandate at FHFA, installing himself on the boards of Fannie Mae and Freddie Mac and implementing cuts at both agencies.
The Federal Reserve declined to comment.
Chair Jerome Powell faces similar pressure from President Donald Trump, who took to his social media platform, Truth Social, in April and threatened to fire him. Powell has another year to go in his term. Stocks crashed in response to the threat. Trump later told the news media that he would not fire Powell, and the stock market rebounded.
Fed cuts typically give buyers a boost
The Fed doesn't set mortgage rates, but when the central bank moves interest rates, it sends ripples through the economy that reach mortgages. The Mortgage News Daily Index had the 30-year fixed rate at 6.98% Wednesday.
Any reduction in interest rates means more homebuying power. With a mortgage rate of 6.98%, the monthly payment on a $400,000 30-year, fixed loan with no money down would be $2,656. With an interest rate of 6%, it would be $258 less.
Presidents and their administrations have long had a tug-of-war with the Federal Reserve. In 1972, President Richard Nixon called on Arthur Burns, then chair of the Federal Reserve, to cut rates. Burns eventually buckled under the pressure, despite economic indications that his team should do otherwise. This contributed to a prolonged period of high inflation throughout the 1970s, serving as a cautionary tale for future administrations trying to sway the agency.