A heated exchange reportedly occurred between US Treasury Secretary Scott Bessent and Federal Housing Finance Agency Director Bill Pulte at a private dinner in Washington DC. According to eyewitness accounts, the confrontation took place last week at the Executive Branch club, a private club co-founded by Donald Trump Jr., during a dinner hosted for podcaster Chamath Palihapitiya’s birthday.

The altercation allegedly began when Bessent launched a profanity-laced tirade at Pulte, who he believed was speaking negatively about him to US President Donald Trump. Bessent reportedly shouted at Pulte, asking why he was discussing him with the president, and threatened to punch him in the face. The situation was defused by club co-owner Omeed Malik, who intervened and separated the two men.

The clash is said to have stemmed from tensions between Bessent and Pulte over the privatization of Fannie Mae and Freddie Mac, projects assigned to them by President Trump in May. The two officials have also been on opposite sides of the debate regarding the potential removal of Federal Reserve Chair Jerome Powell. Bessent has cautioned against such a move, warning it could destabilize financial markets, while Pulte has urged Powell to resign.

This incident is not the first reported confrontation involving Bessent. Earlier this year, he allegedly clashed with Elon Musk near the Oval Office, using profanities to accuse the tech billionaire of going behind his back in a dispute over the acting Internal Revenue Service commissioner appointment.

The reported exchange between Bessent and Pulte highlights the underlying tensions within the administration regarding key economic policies. The privatization of Fannie Mae and Freddie Mac, as well as the debate over Powell’s removal, are significant issues with potential implications for the US economy. As the situation develops, it remains to be seen how these tensions will be addressed and what impact they may have on the administration’s economic agenda.