FHFA Chief Pruitt Slams Federal Reserve’s Powell as ‘Out of Touch’ with Working Americans
On June 21, FHFA Director Mike Pruitt publicly criticized Federal Reserve Chair Jerome Powell, accusing him of being ‘out of touch’ with everyday Americans facing high auto loan, credit card and mortgage costs. Pruitt labeled Powell ‘Mr. Late’ for the Fed’s delayed rate cuts and argued that the Federal Reserve’s policies neglect those juggling everyday debts. The remarks mark a rare public rebuke of the Fed Chair by another federal regulator. They highlight growing political pressure on the Federal Reserve’s monetary policy as inflation cools but borrowing costs remain elevated for consumers.
Neutral
The criticism of Fed Chair Powell by FHFA Director Pruitt is primarily a political and regulatory development. It does not directly affect cryptocurrency markets or trading volumes, as it focuses on consumer lending and Federal Reserve policy timing rather than digital assets. Similar past rebukes of Fed decisions have had limited impact on crypto prices. In the short term, volatility in traditional markets may rise, but cryptocurrencies are likely to react neutrally. Over the long term, any shift in Federal Reserve policy that influences interest rates or dollar strength could indirectly affect crypto sentiment, yet this specific critique is unlikely to sway major digital‐asset trends.