Key Takeaways

• A fierce power struggle has erupted inside the Trump administration.
• Treasury Secretary Scott Bessent nearly fought FHFA director Bill Pulte.
• Observers say Commerce Secretary Howard Lutnick pulled the strings.
• Pulte has been probing politicians’ mortgage records, including Fed governor Lisa Cook.
• This clash may reshape senior leadership battles under Trump’s second term.

Inside the Power Struggle

A dramatic showdown broke out last week in Washington. Treasury Secretary Scott Bessent squared off against Federal Housing Finance Agency director Bill Pulte. Heated words flew. Reportedly, Bessent even threatened to punch Pulte. This headline-grabbing clash shows just how fierce the power struggle has become.

Almost everyone sees deeper forces at work. These insiders believe the fight was no accident. Instead, they say it was a deliberate move by a top rival. Now, Bessent’s allies and opponents are bracing for more clashes. Moreover, each side seeks more influence over key policies and appointments.

What Triggers the Power Struggle?

First, Scott Bessent landed his job thanks to strong support from Trump’s inner circle. He oversees tax, debt, and spending plans. Meanwhile, Bill Pulte leads the FHFA, which shapes mortgage rules and backs home loans. Both roles carry big power and money.

However, their paths crossed when Pulte opened investigations into several high-profile figures. He dug through mortgage files, looking for mistakes or fraud. His targets included politicians who once butted heads with Trump. For example, he recently flagged Federal Reserve governor Lisa Cook for alleged paperwork errors on two home loans.

In response, Bessent viewed Pulte’s moves as a direct threat. After all, Bessent must protect the administration’s reputation. Therefore, when Pulte criticized Cook, Bessent stepped in to defend her. This clash over jurisdiction and loyalty escalated quickly into a full-blown power struggle.

Who’s Behind the Scenes?

According to insiders, Commerce Secretary Howard Lutnick pulled the strings. Lutnick originally wanted the Treasury job himself. When he lost out, he vowed to influence policy from his perch at Commerce. Thus, he quietly backed Pulte’s mortgage probes to weaken Bessent’s standing.

In fact, former Trump aide Steve Bannon spilled the beans over the weekend. He called Pulte “the twisted instrument of Howard Lutnick in his ongoing war against Treasury Secretary Scott Bessent.” In simple terms, Lutnick uses Pulte as his pawn. As a result, the administration’s top brass now jockey for position in an all-out power struggle.

Furthermore, rumors swirl that Lutnick met with Pulte before every major mortgage complaint. He allegedly handed down instructions on which records to examine next. Although both men publicly deny any collusion, the tension keeps growing.

Pulte’s Investigations and Targets

Over the past few months, Pulte launched a series of mortgage audits. He combed through loan files of several officials linked to Trump’s past disagreements. On one hand, he flagged minor errors and paperwork inconsistencies. On the other, he lodged formal complaints for alleged mortgage fraud.

Lisa Cook, a Federal Reserve governor, became his latest high-profile target. Pulte claims she listed two primary residences on separate mortgage applications. Yet Cook insists she informed her credit union that one property was a vacation home. A Reuters review of credit union notes seems to support her side. This evidence raises doubts about whether the error was intentional.

Also, Pulte turned his attention to other adversaries. He probed loans tied to former aides who criticized Trump’s policies. He even eyed certain lawmakers who voted against key Trump initiatives. Each time, he boosted the pressure on officials connected to the administration’s rivals. Clearly, Pulte aims to reshape the playing field and keep opponents on the defensive.

Meanwhile, Bessent has tried to check Pulte’s power. He sent memos questioning the legality of some probes. He urged White House lawyers to review Pulte’s authority. Yet his efforts failed to slow down the investigations. This ongoing tug-of-war highlights the depth of the ongoing power struggle.

What’s Next in the Power Struggle?

As this feud continues, the stakes keep rising. If Bessent ducks too many fights, he risks losing credibility. On the flip side, if Pulte pushes too far, lawmakers may step in to curb his powers. Plus, Trump’s own priorities could shift once he returns to office, further shaking up the hierarchy.

In the coming weeks, watch for these key moves:

• White House intervention. If the president fears damage to his agenda, he may call a truce.
• Congressional oversight. Lawmakers might hold hearings to limit FHFA’s reach.
• Cabinet shake-ups. Lutnick could swap allies into new roles or push Bessent out.
• Legal battles. Targeted officials might sue over alleged overreach in mortgage audits.

No matter what unfolds, this internal fight shows how personal ambition shapes policy. It also proves that even allies can become rivals when big money and power are at stake. Ultimately, the winner of this internal struggle will control major White House decisions in a second Trump term.

Frequently Asked Questions

Why did Scott Bessent and Bill Pulte clash?

They disagreed over Pulte’s mortgage investigations into officials tied to Trump’s critics. Bessent saw these probes as a threat to the administration’s reputation.

Who is orchestrating the power struggle?

Observers point to Commerce Secretary Howard Lutnick. He reportedly uses Pulte to weaken Bessent after missing out on the Treasury Secretary role.

What’s Bill Pulte investigating?

Pulte has probed mortgage records of various politicians. His latest target claims errors by Fed governor Lisa Cook, though evidence suggests they were unintentional.

How might this power struggle end?

Possible outcomes include White House mediation, congressional limits on FHFA, cabinet reshuffles, or legal challenges from targeted officials.