Is the Federal Reserve’s lavish $2.5 billion headquarters renovation about to cost Jerome Powell his job?
According to the New York Post, under fire for allegedly misleading Congress about an extravagant overhaul of the Fed’s Washington, DC, offices—mockingly dubbed the “Palace of Versailles”—Powell is reportedly weighing resignation amid intense criticism from senior Trump administration officials and strategic moves by President Trump himself.
The controversy erupted in April when The Post first exposed the staggering cost of the Fed’s renovation project, initially pegged at $1.9 billion but ballooning by 30% to $2.5 billion.
Sen. Tim Scott (R-SC) likened the project to the opulent “Palace of Versailles,” highlighting concerns over government excess at a time when fiscal restraint is paramount.
During a June 25 Senate Banking Committee hearing, Powell denied claims of extravagant features, stating, “There’s no VIP dining room.”
He further insisted that many plans approved by the National Capital Planning Commission (NCPC) in 2021 were scrapped, contradicting documented evidence.
By Friday, a senior Trump administration official revealed Powell is “considering resigning,” citing mounting pressure for an investigation into whether he misled Congress.
A separate government insider noted Powell has grown “fatigued” from the scrutiny, asking, “Why would you stay at a party when no one wants you there?”
Bill Pulte, a key figure in federal housing finance, echoed this sentiment on X, suggesting Powell might not finish his term and adding, “I think this will be the right decision for America.”
On Thursday, President Trump, who nominated Powell in 2018 but has since criticized him as “Too Slow” on interest rates, appointed three new members to the NCPC, which oversees federal development projects. This shake-up, described by a senior official as part of a “4D chess” strategy, is seen as a direct effort to force Powell out.
Also on Thursday, Office of Management and Budget chief Russ Vought slammed Powell in a letter, stating, “The President is extremely troubled by your management.”
Vought accused Powell of ignoring fiscal responsibility, writing, “Instead of attempting to right the Fed’s fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington, DC headquarters.”
On Tuesday, The Post obtained the Fed’s 2025 budget through a Freedom of Information Act request, confirming the $2.5 billion renovation cost, fueling further outrage among taxpayers wary of government waste.
As the Fed prepares for its late July meeting, with Wall Street expecting rates to hold steady at 4.25% to 4.5%, the spotlight remains on Powell, whose term runs until May 2026, though a White House insider noted, “There are no plans to change the Fed chair.”