In a dramatic turn of events at a private dinner last week, Treasury Secretary Scott Bessent reportedly threatened Federal Housing Finance Agency (FHFA) Director Bill Pulte with physical violence.
The heated exchange, as reported by Politico, took place at the Executive Branch, a private club with ties to President Donald Trump, co-founded by Donald Trump Jr. The confrontation was sparked by allegations that Pulte had been speaking critically of Bessent to the President, according to an anonymous source cited by Politico.
During the altercation, Bessent allegedly confronted Pulte with a barrage of expletives, saying, Why the fuck are you talking to the president about me? Fuck you, and further threatening, Im gonna punch you in your fucking face.
The situation escalated as Bessent reportedly insisted on Pulte's removal from the event, declaring to co-owner Omeed Malik, Its either me or him. You tell me whos getting the fuck out of here. Bessent also challenged Pulte to step outside, ostensibly for a physical confrontation, to which Pulte inquired, To do what? To talk? Bessent replied, No, Im going to fucking beat your ass.
According to Politico, the dinner was attended by several high-profile figures, including Transportation Secretary Sean Duffy, Commerce Secretary Howard Lutnick, and Director of National Intelligence Tulsi Gabbard, among others. The altercation between Bessent and Pulte was described by one anonymous source as bonkers and by another as unhinged.
As reported by the Daily Caller, the tensions between Bessent and Pulte are not new. In May, President Trump announced that Bessent, Lutnick, and Pulte would collaborate on a plan to privatize Fannie Mae and Freddie Mac, entities regulated by the FHFA.
However, the two have reportedly been at odds over the direction of this initiative and other economic matters. Pulte has also been vocal in his calls for Federal Reserve Chair Jerome Powell to lower interest rates, adding another layer of complexity to the ongoing disagreements.
Despite efforts by Malik to calm the situation, the two men were ultimately seated at opposite ends of the table to prevent further conflict. The Treasury Department and the FHFA have yet to comment on the incident, leaving many questions unanswered about the future of their working relationship and the privatization plan they are tasked with developing.
The incident underscores the high-stakes environment in which these officials operate, where personal and professional tensions can quickly escalate. As the Trump administration continues to push for significant changes in housing finance, the ability of its key players to collaborate effectively remains a critical concern.
The outcome of this dispute could have far-reaching implications for the administration's economic policies and the broader financial landscape.
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