Fannie Mae Chairman Supports Potential Resignation of Federal Reserve Chair
Statement from Chairman of the Board of Fannie Mae and Freddie Mac
William J. Pulte, the Chairman of the Board of Fannie Mae and Freddie Mac, recently shared his thoughts on the possibility of Jerome Powell resigning as the Chair of the Federal Reserve. Pulte expressed his support for Powell's potential decision, stating that it would be the "right decision for America" and that the economy would "boom" as a result. This news has caused a stir in the financial world, with many speculating on the reasons behind Powell's potential resignation and the impact it could have on the economy. Pulte's statement provides insight into the potential benefits of Powell's resignation and the confidence it could bring to the market.
Encouragement for a Resignation
Pulte's statement reflects the sentiment of many in the financial industry who have been critical of Powell's leadership at the Federal
About the People Mentioned
Jerome Powell
Jerome H. Powell is the Chair of the Board of Governors of the Federal Reserve System, the central bank of the United States, a position he has held since February 2018 following his initial appointment by President Donald Trump and subsequent reappointment by President Joe Biden for a second four-year term in May 2022[2][5]. He also chairs the Federal Open Market Committee, the Fed’s principal monetary policymaking body[2]. Powell’s tenure spans some of the most significant economic challenges in recent U.S. history, including the post-Great Recession recovery and the financial fallout from the COVID-19 pandemic[3][6]. Born on February 4, 1953, in Washington, D.C., Powell holds an AB in politics from Princeton University (1975) and a law degree from Georgetown University (1979), where he was editor-in-chief of the Georgetown Law Journal[2]. His career before the Fed included roles as a lawyer and investment banker in New York City, a partner at The Carlyle Group (1997–2005), and a visiting scholar at the Bipartisan Policy Center focusing on fiscal issues[2][5]. He served as both Assistant Secretary and Under Secretary of the Treasury under President George H.W. Bush, with responsibilities for financial institutions and the Treasury debt market[2][5]. Powell was first nominated to the Federal Reserve Board by President Barack Obama in 2012 and assumed office in May of that year, later being reappointed for a term ending January 31, 2028[2][8]. As Fed Chair, he initially continued the policy of gradually raising interest rates—a process begun under his predecessor, Janet Yellen—to return monetary policy to more normal levels after the 2007–08 financial crisis[3]. This approach drew criticism from President Trump, who publicly opposed further rate hikes, but Powell maintained that such measures were necessary to prevent inflation and ensure long-term stability[3]. Powell’s leadership was again tested during the COVID-19 pandemic, when he led the Fed in slashing interest rates to near zero, launching emergency lending programs, and purchasing corporate debt to stabilize financial markets—actions that significantly expanded the central bank’s role in the economy[3]. Despite political pressures from both Democratic and Republican administrations, Powell has been praised for his steady, data-driven approach to monetary policy[6]. He resides in Chevy Chase, Maryland, with his wife and three children[6]. As of 2025, Powell remains a central figure in U.S. and global economic policy, overseeing the Fed’s efforts to balance inflation control with support for economic growth amid ongoing uncertainties in the financial landscape[2][5].
About the Organizations Mentioned
Fannie Mae
## Overview Fannie Mae, formally known as the Federal National Mortgage Association (FNMA), is a cornerstone of the U.S. housing finance system, operating as a government-sponsored enterprise (GSE) since its founding in 1938 during the Great Depression[2][5]. Established under the New Deal to expand the secondary mortgage market, Fannie Mae’s mission is to ensure a reliable and affordable supply of mortgage funds nationwide, supporting both homeownership and rental housing[2][5][8]. ## Core Functions Fannie Mae purchases residential mortgages from approved lenders, bundles them into mortgage-backed securities (MBS), and sells these securities to global investors[1][4]. By doing so, it injects liquidity into the mortgage market, allowing lenders to offer more loans at stable rates[1][4][5]. The organization also guarantees the timely payment of principal and interest on these securities, attracting a diverse investor base and helping to lower borrowing costs for American families[1][4]. In the first half of 2025 alone, Fannie Mae provided $178 billion in funding to the housing market and helped 668,000 households buy, refinance, or rent homes[4]. ## History and Evolution Originally a federal agency, Fannie Mae became a publicly traded, shareholder-owned company in 1968, though it retains a congressional charter and operates under federal oversight[2][5]. Its “sibling” organization, Freddie Mac, was created in 1970 to further support the mortgage market[5]. Over the decades, Fannie Mae has played a pivotal role in standardizing mortgage underwriting, pioneering automated underwriting systems (such as Desktop Underwriter), and expanding access to credit for underserved communities[4]. ## Current Status and Key Metrics As of mid-2025, Fannie Mae remains one of the largest financial institutions in the world, with over $4.3 trillion in total assets and a net worth of $101.6 billion[
Freddie Mac
Freddie Mac, officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise (GSE) established in 1970 to enhance liquidity, stability, affordability, and equity in the U.S. housing market. It operates by purchasing mortgages from lenders, pooling them, and issuing mortgage-backed securities (MBS) to investors, thus facilitating the flow of capital into housing finance and making homeownership and rental housing more accessible to millions of Americans[1][2]. Since its inception, Freddie Mac has helped tens of millions of families buy, rent, or keep their homes, especially supporting middle- and low-income households. In recent years, it has maintained a significant presence in the single-family and multifamily housing markets. For instance, in the second quarter of 2025, Freddie Mac’s mortgage portfolio stood at $3.6 trillion, providing more than $100 billion in liquidity to the housing finance system and assisting over 360,000 families, including more than 100,000 first-time homebuyers[1][3]. Financially, Freddie Mac reported net income of $2.4 billion for Q2 2025 and $2.8 billion for Q1 2025, reflecting strong net interest income driven by mortgage portfolio growth and efficient funding costs, despite some challenges from credit loss provisions and lower non-interest income in multifamily sectors[1][4][6]. Its net worth increased to $65 billion by mid-2025, illustrating robust capital strength and operational resilience[3][6]. Freddie Mac plays a key role in financing affordable rental housing, with federal regulators setting multifamily loan purchase caps to balance market support and private capital participation. For 2025, the cap was set at $73 billion, with a mission-driven minimum of 50%, emphasizing support for affordable and workforce housing[7]. Notably, Freddie Mac remains under federal conservatorship since the 2008 financial crisis but has consistently returned to profitability and capital growth. There i
