Federal Housing Director Bill Pulte said Thursday he is optimistic that Jerome Powell will “do the right thing,” pointing to a potential interest rate cut at next week’s Federal Reserve meeting.
The Federal Open Market Committee (FOMC) is scheduled to meet on July 30 and 31, with markets watching closely. Current interest rates remain between 5.25% and 5.50%, the highest level since 2001. Pulte, a long-time housing advocate, emphasized the Fed must consider the broader impact of high rates on mortgage access and affordability.
Recent data adds weight to his statement. Mortgage applications have fallen over 14% in the last quarter. 30-year fixed mortgage rates remain above 7%. Meanwhile, core inflation is softening and unemployment is rising in key states like Texas and California.
While Powell has kept a cautious tone, saying the Fed needs “more data,” traders are increasingly pricing in a 0.25 percentage point cut. If confirmed, it would mark the first rate cut since March 2020, signaling a possible policy shift.
A reduction could help unlock credit, stimulate housing, and support economic recovery. Pulte’s statement adds momentum, suggesting that monetary policy is no longer just a technical debate but a visible political and economic turning point.
What the Fed decides next week may define the direction of the U.S. economy for the rest of 2025.
