Federal Housing Director Hints at Possible Powell Resignation, Stirring Market Speculation

The U.S. financial markets are abuzz with speculation after Bill Pulte, director of the Federal Housing Finance Agency (FHFA), suggested on social media that Federal Reserve Chair Jerome Powell may soon resign. Pulte referenced an upcoming "resignation speech," though he later walked back the claim, noting Powell’s scheduled Monday address might be unrelated. The ambiguity has fueled intense debate over Powell’s future and its implications for monetary policy.

Pulte has been a vocal critic of Powell, targeting the Fed’s high interest rates, a controversial $2.5 billion headquarters renovation, and what he calls a damaging tightening stance for the housing market. His advocacy for Powell’s removal—including a drafted letter to former President Trump—adds political weight to the speculation.

Markets are bracing for potential volatility. A sudden leadership change at the Fed could disrupt Wall Street’s expectations on interest rates and liquidity, with Ripple effects across asset classes, including cryptocurrencies. Traders will scrutinize Powell’s next remarks for clues.