Fed Chair Powell Under Fire: US FHFA Chair Demands Congressional Investigation

Washington turns up the heat as housing finance chief throws down the gauntlet.

In a move that's rattled the marble halls of DC, the US Federal Housing Finance Agency chair just called for Congress to put Jerome Powell under the microscope. No subpoenas yet—but someone's clearly gunning for the Fed chief's scalp.

Funny how these 'urgent investigations' always seem to pop up right before election season—almost like clockwork. Or maybe like a desperate hedge fund doubling down on a bad position.

Fed Chair Powell Continues to Face Scrutiny, Termination Threats

The Federal Reserve chairman has faced plenty of scrutiny over the last year over a variety of issues. Most notably, the TRUMP administration has bashed Jerome Powell and the Fed over not rushing to reverse all of the interest rate hikes executed during the COVID-19 pandemic. The Fed has yet to cut rates this year, holding the federal funds rate target range at 4.25%-4.50%. However, he and other experts have hinted at 1-2 cuts coming before 2025 ends, but the central bank isn’t rushing a decision. The US inflation rate is still up in the last few months, albeit below economists’ expectations.

Furthermore, just a few months into his sitting as US President, Trump looked intofrom his post as Fed chairman. Back in April, economic advisor Kevin Hassett told reporters, “The president and his team will continue to study that matter,” according to a Reuters report. Trump has accused Powell of “playing politics” in his tirades against the chairman. Additionally, Trump said the agency, under Powell’s leadership, was “always too late and wrong,” while claiming the country was “getting rich on tariffs.” Meanwhile, Powell has continued the agency’s wait-and-see approach to handling inflation and further interest rate cuts.

Congress has yet to respond to the declaration to investigate Fed Chair Powell.