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Federal Reserve Chair Jerome Powell is reportedly considering whether to step down, amid controversy surrounding a massive $2.5 billion renovation of the Fed’s Washington, D.C. headquarters, a project critics have mockingly dubbed the “Palace of Versailles.”
According to a senior Trump administration official, Powell is seriously “considering resigning,” amid growing outrage over whether he misled lawmakers about the extravagant scale and cost of the renovations. The pressure has only intensified following comments from Bill Pulte, head of Fannie Mae and Freddie Mac, who stirred speculation in a post on X, suggesting that Powell may not even complete his term.
Pulte hasn’t held back. He’s publicly and repeatedly called for Jerome Powell’s resignation, accusing him of offering “deceptive” testimony to Congress regarding the project’s ballooning expenses and luxury features.
What was the origin of the idea for Jerome Powell’s resignation?
The uproar began when a report from The New York Post in April revealed that the renovation budget had soared by 30%, jumping from an already staggering $1.9 billion to $2.5 billion. At the time, Powell downplayed the coverage, insisting the portrayal was misleading. He denied there were any overly lavish additions like marble interiors, private dining rooms, or rooftop gardens.
Planning documents from 2021, reviewed and approved by the National Capital Planning Commission (NCPC), do in fact list many of those upscale features Powell claimed didn’t exist.
That discrepancy has raised some serious red flags. Critics, including Office of Management and Budget (OMB) chief Russ Vought, now argue that Powell’s denials may violate federal planning laws. In a strongly worded letter to Powell this week, Vought said the President is “deeply concerned” and demanded a detailed explanation about what was said, and what was left out.
Further raising eyebrows, former President Trump on Thursday appointed three new members to the NCPC. a move insiders say appears to be part of a quiet but strategic effort to edge Powell out. One senior official, speaking anonymously, summed it up bluntly: “Why would you stay at a party when no one wants you there?”
Still, despite all the political manoeuvring and swirling rumours, the White House is officially staying the course. A source close to the administration told The Post, “There are no plans to change the Fed chair.” Powell’s current term runs until May 2026.
For now, Powell is holding firm. A spokesperson for the Federal Reserve declined to comment further, simply pointing back to Jerome Powell’s earlier statement that he fully intends to serve out his term.
But if he were to step down, names already circulating as possible successors include National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, and former Fed Governor Kevin Warsh.
In the meantime, all eyes are on the Fed’s next interest rate decision, expected at the end of July, a meeting now set against a backdrop of high stakes and higher tension.