Donald Trump’s closest allies are in a frenzy over his small but apparently mighty federal housing finance director.
Bill Pulte, a 5’8 Trump loyalist known as “Little Trump” for his shameless tactics, was reportedly a key force behind the Justice Department’s stunning move to target Federal Reserve Chairman Jerome Powell with a criminal probe, Bloomberg reported—the latest legal action aimed at a high-profile Trump enemy.
Trump selected Pulte, the grandson of major homebuilder PulteGroup founder William J. Pulte, as his nominee for director of the Federal Housing Finance Agency days before he began his second term.
Now, the president’s other key allies are reportedly sounding the alarm over the ramifications of his latest move—which could include rattling the bond market and igniting a prolonged legal war with Powell.
Additionally, the Fed chair’s term is set to conclude in May, but Trump insiders now worry that the political firestorm could prompt Powell to remain as a Fed governor until 2028.
“Bill Pulte is one of the President’s most loyal and important advisors who is doing a great job leading FHFA,” White House Communications Director Steven Cheung wrote in a statement to the Daily Beast. “Efforts by the Fake News to sow division inside of President Trump’s all-star administration will not work and are a pathetic attempt to distract away from all of the victories being delivered for the American people. Bill Pulte is a patriot and has the full confidence of President Trump.”
Trump said late last year that he was considering filing a “gross incompetence” lawsuit against Powell over the cost of renovations. He has also repeatedly ranted that the Fed was too slow to cut interest rates, attacking Powell—whom he first nominated during his first term—as “stupid.”
Powell slammed what he sees as a phony investigation in a rare video posted to social media on Sunday, insisting the probe had nothing to do with renovations.
“No one, certainly not the chair of the Federal Reserve, is above the law,” Powell said. “But this unprecedented action should be seen in the broader context of the administration’s threats and ongoing pressure.”
It is little surprise that Pulte, 37, was in the ear of the 79-year-old president. Pulte is committed to remaining in Trump’s orbit and goes to great lengths to stay there. The Trump appointee is a member of Trump’s Mar-a-Lago club and frequently appears there whenever Trump is in town. On Friday, he even flew down to Palm Beach, Florida, aboard Air Force One alongside the president.
Pulte has made a habit of aggressively targeting Trump’s enemies. He has overseen a mortgage-fraud investigation into Trump nemesis Sen. Adam Schiff alongside fellow Trump appointee Ed Martin. But in November, two sources familiar with the matter told CNN that the DOJ was raising serious concerns about the credibility of that probe.
It is not the first time Pulte has drawn scrutiny for his unconventional—and reportedly chaotic—methods, which have driven other administration officials up the wall. In November, the director of the Federal Housing Finance Agency came under fire after it was reported that he had convinced Trump to float the idea of replacing 30-year mortgages with 50-year mortgages, despite warnings from experts that the proposal could trap borrowers in lifelong debt.
Just two days later, news broke that a team of ethics and investigations watchdogs had been fired at Fannie Mae, a government enterprise that helps keep the U.S. housing market stable. The investigators had reportedly been probing whether Pulte had improperly obtained sensitive mortgage data on key MAGA enemies, including New York Attorney General Letitia James.
Pulte has also clashed with fellow Trump allies, tangling with Scott Bessent at a dinner hosted by Donald Trump Jr., Politico reported. The Treasury secretary had heard that Pulte was badmouthing him to the president behind his back and became so angry he threatened to punch Pulte “in the f--king face.”
At the time, White House insiders told the New York Post that they would not put their money on Pulte. “The general consensus in the White House is that Scott would have beat that little midget’s a-- and everyone would have paid big money to watch it happen,” a source told the outlet.
The Daily Beast has reached out to the Federal Housing Finance Agency.
