US Federal Reserve Chair Jerome Powell is reportedly thinking about resigning. This comes after heavy criticism about a super expensive $2.5 billion renovation of the Fed’s Washington headquarters. Bill Pulte, a top Trump administration official, said Friday he heard “reports” Powell might leave before his term ends in May 2026.
The project’s costs ballooned from $1.9 billion to $2.5 billion, with critics like Senator Tim Scott calling it a “Palace of Versailles”-style waste. Powell claims media reports about luxury features like VIP dining rooms and marble are “misleading,” but planning documents from 2021 show these were originally approved.
White House accuses Powell of lying and mismanagement
The Trump administration is turning up the heat. On Thursday, budget chief Russ Vought accused Powell of “gross mismanagement” and possibly lying to Congress about the renovation .
Vought’s letter states President Trump is “extremely troubled” and demands answers within a week . Separately, Trump replaced three officials on the commission overseeing the project, seen as pressure tactic. Trump himself keeps calling Powell “Too Slow” for not cutting interest rates, even saying: “Why would you stay at a party when no one wants you there?”
Can Trump fire Powell? Legal battle looms
While Trump wants Powell gone, firing him isn’t simple. Fed chairs can only be removed “for cause” like misconduct, and courts have protected their independence.
Some experts think the renovation probe is just an excuse to oust Powell over policy disagreements.
If Powell resigns, top replacements include Trump economic adviser Kevin Hassett or Treasury Secretary Scott Bessent, according to reports on top contenders.
Powell insists he’ll serve his full term, but insiders say he’s “fatigued” by the attacks. With the Fed’s next meeting July 30–31, all eyes are on whether rates stay steady again—and if Powell stays in his job.