Federal Reserve Chair Jerome Powell is reportedly contemplating stepping down as scrutiny mounts over a $2.5 billion overhaul of the Fed’s Washington, DC, headquarters, dubbed the “Palace of Versailles.” Bill Pulte, head of Fannie Mae and Freddie Mac, hinted that Powell is considering resignation, suggesting it could “help America’s economy.” Meanwhile, pressure from President Trump and the White House budget office has intensified, citing concerns that Powell misled Congress about the project’s extent.
Powell officially reassured lawmakers that he plans to remain until his term ends in May 2026, though critics—pointing to lavish design details like marble, water installations, and rooftop gardens—say his statements contradicted approved planning documents. The Office of Management and Budget has demanded further clarification on budget overruns, which have surged from the initial $1.9 billion to $2.5 billion.
While there’s no formal move to remove him, speculation about successors—such as Kevin Hassett or Kevin Warsh—has begun circulating. The Fed’s next meeting is expected to maintain current interest rates, but the leadership uncertainty could introduce instability into financial markets.