A new internal rift has erupted within Donald Trump’s MAGA-aligned administration, this time centering on the Federal Reserve and its interest rate policy. According to a report from The Daily Beast on Thursday, the clash has sparked a fiery war of words between top Trump-appointed officials, exposing deep divisions over economic strategy.
At the heart of the controversy is Federal Housing Finance Agency (FHFA) Director Bill Pulte, who unleashed a barrage of social media attacks this week aimed squarely at Federal Reserve Chair Jerome Powell. Pulte, a staunch Trump ally confirmed as FHFA director earlier this year, accused Powell of harming American homeowners and the broader mortgage market by refusing to lower interest rates.
“Because President Trump has crushed inflation, Fed Chairman Jerome Powell needs to lower interest rates today, and if not, Chairman Powell needs to resign, immediately,” Pulte posted on Wednesday. “Fannie Mae and Freddie Mac can help so many more Americans if Chair Powell will just do his job and lower rates.”
Pulte’s comments came just ahead of the Federal Reserve’s announcement that interest rates would remain unchanged for the time being. Over the next 24 hours, he continued his online campaign, publishing eight additional posts criticizing Powell for his handling of the economy and claiming the Fed chair was out of touch with what was needed to support the housing market.
“He is hurting Americans and hurting the mortgage market, which I am responsible for regulating,” Pulte told his followers. The online feud has added to growing signs of discord within Trump’s circle, as key figures argue over both domestic and foreign policy. The Daily Beast also noted the parallel civil war among Republicans regarding the administration’s stance on the Israel-Iran conflict.
Prominent conservative voices such as Tucker Carlson and Steve Bannon have urged Trump to avoid further U.S. involvement in the Middle East. President Trump himself eventually weighed in on the economic dispute, taking aim at Powell on his Truth Social platform.
“Too Late—Powell is the WORST. A real dummy, who’s costing America $Billions!” Trump wrote on Thursday. Powell, who was originally nominated to lead the Fed by Trump in 2017 and reappointed by President Joe Biden in 2022, has maintained a cautious stance on rate cuts, citing ongoing concerns about inflation and economic stability.
With Pulte now overseeing Fannie Mae and Freddie Mac, his high-profile attacks on Powell highlight a deepening divide over how best to steer the U.S. economy, one that may intensify as the 2024 election looms.