A key official from the Trump administration mentioned on Friday that he was “thinking about resigning,” as there’s increasing pressure to investigate whether Jerome Powell, the Chairman of the Federal Reserve, misled Congress over renovations at the central bank’s headquarters in Washington, D.C., which have been likened to the “Palais of Versailles.”
Bill Parte, who heads the government-supported mortgage organizations Fannie Mae and Freddie Mac, indicated that he had come across “reports” suggesting this shakeup.
“This seems to be the right move for the country, and the economy could really take off,” stated a former journalist who’s also a private equity leader.
Pulte, responsible for overseeing Fannie and Freddie as the director of federal housing finance agencies, did not respond to a request for comments via email.
An independent government official noted having “high-level, reliable sources” within the administration.
Insiders mentioned that Powell was feeling the pressure and had grown “weary” since the story broke in April about $2.5 billion being funneled into office renovations that Sen. Tim Scott (R-SC) described as reminiscent of the “Palais of Versailles.”
One observer questioned, “Why stick around at a party where you’re not wanted?”
President Trump, who has often labeled Powell as “slow,” appointed three new members to the National Capital Planning Commission on Thursday, tasked with overseeing federal development projects.
This shakeup at the NCPC is perceived as another maneuver to push Powell, who was nominated for the Fed chair position in 2018, to step down.
Senior administration officials informed the Post that the repeated criticisms directed at the 72-year-old Powell are part of a strategic “4D chess” game employed by the president and his supporters, aimed at pressuring him to resign.
A spokesperson for the Fed declined to comment, referencing Powell’s remarks from April 4, indicating that he plans to remain in his role until his term ends in May 2026.
Powell faced backlash for allegedly misleading Congress, as critics, including Pulte and other congressional representatives, took issue with his commentary on what some termed “inflated compensation,” which he referred to as “misleading and inaccurate.”
“There are no VIP dining areas, no new marble, and no special elevators,” Powell testified during a Senate Banking Committee hearing on June 25. “No new water features, no beehives, and no garden terraces.”
However, his statements contradicted the project’s official planning documents, approved by the NCPC in 2021.
Additionally, Powell’s comments attracted scrutiny after management and budget directors raised concerns on Thursday.
A government watchdog expressed dissatisfaction with Powell regarding what they termed a “vanity project.” In a letter to Powell, which the Post acquired, Vought articulated, “The President is frustrated with how the Federal Reserve is being managed. Instead of aligning the Fed’s financial strategies, you chose to invest heavily in an extravagant renovation at the D.C. headquarters.”
On Tuesday, the Post received insights into the Fed’s 2025 budget through a Freedom of Information Act request, highlighting the striking costs of the renovation.
Powell had informed Congress that a number of the renovation plans had been canceled by the NCPC.
Vought emphasized that this situation could breach the National Capital Programme Act, which governs projects at national sites, and requested Powell to respond to a series of questions by the following week.
The Fed’s upcoming meeting is set for late July, with market expectations suggesting that current interest rates, which are between 4.25% and 4.5%, will remain unchanged.
If Powell chooses to resign, potential successors could include Kevin Hassett, Treasury Secretary Scott Becent, or former Fed Governor Kevin Warsh, now the director of the U.S. National Economic Council.
However, a source close to the White House claimed that Powell would not be leaving his position. “There are no plans to replace the Fed Chairman,” the senior official stated.
