Fed chair faces mutiny over $2.5 billion ‘Palace’: Is Jerome Powell about to resign?

Federal Reserve Chair Jerome Powell is reportedly considering stepping down amid escalating scrutiny over a $2.5 billion renovation of the central bank’s Washington, DC headquarters, a project dubbed by critics as the “Palace of Versailles.”

A senior Trump administration official confirmed Friday that Powell is “considering resigning” as pressure builds around whether he misled Congress about the lavish project. Fueling speculation, Bill Pulte—chair of government-backed lenders Fannie Mae and Freddie Mac—claimed in a post on X that Powell may not finish his term.

Pulte has repeatedly called for Powell’s resignation, accusing him of giving “deceptive” testimony to the Senate.

The controversy erupted after The Post revealed in April that the renovation had ballooned in cost by 30%, from $1.9 billion to $2.5 billion.

Powell had dismissed the coverage as “misleading,” denying extravagant upgrades like VIP dining rooms, marble finishes, or rooftop gardens. However, those very features were listed in the project’s planning documents approved by the National Capital Planning Commission (NCPC) in 2021.

Critics, including OMB chief Russ Vought, argue Powell’s denials could amount to a violation of federal planning laws. In a letter to Powell this week, Vought expressed the President’s concerns and demanded answers about the discrepancies.

Adding to the pressure, Trump appointed three new members to the NCPC on Thursday—moves seen by insiders as part of a strategic campaign to push Powell out. “Why would you stay at a party when no one wants you there?” said one senior official.

Despite the speculation, a White House source told the Post, “There are no plans to change the Fed chair.” Powell’s term runs through May 2026. A Fed spokesperson declined to comment, referencing Powell’s earlier statement that he intends to serve out his full term.

Should Powell resign, possible successors include National Economic Council Director Kevin Hassett, Treasury Secretary Scott Bessent, or former Fed Governor Kevin Warsh. For now, Powell remains in place, with the Fed’s next rate decision expected at the end of July.