---
title: "U.S. government officials publicly post hints: Powell is considering resigning"
description: "U.S. government officials revealed that Federal Reserve Chairman Jerome Powell may consider resigning due to controversy over the headquarters renovation. The project's cost surged from $1.9 billion t"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/248233750.md"
published_at: "2025-07-12T03:02:58.000Z"
---

# U.S. government officials publicly post hints: Powell is considering resigning

> U.S. government officials revealed that Federal Reserve Chairman Jerome Powell may consider resigning due to controversy over the headquarters renovation. The project's cost surged from $1.9 billion to $2.5 billion and has been criticized as a "Versailles-style" luxury renovation. Powell has been accused of misleading Congress when testifying about the project's details, and the White House Office of Management and Budget has requested an explanation for the cost overruns. The market is concerned that turmoil in the Federal Reserve's leadership could bring uncertainty, with some opinions suggesting that a potential successor might implement a more accommodative monetary policy

U.S. government officials publicly hinted that Federal Reserve Chairman Jerome Powell may consider resigning due to controversies surrounding the renovation of the Federal Reserve's headquarters.

On July 11, media reported that **a senior official from the Trump administration stated on Friday that Powell is "considering resigning" due to the pressures surrounding the renovation project of the Federal Reserve's Washington headquarters.** Another senior government official revealed that "high-level, credible sources" within the government believe Powell is weighing whether to step down.

Additionally, Bill Pulte, head of Fannie Mae and Freddie Mac, also posted on social media platform X, stating that he heard Powell is wavering on completing his term, but he did not provide any evidence.

**The catalyst for this controversy is the accusation that Powell misled Congress when testifying about the details of the Federal Reserve's headquarters renovation project.** White House budget officials have requested Powell to explain issues such as the 30% cost overrun on the renovation.

Although the market generally expects the Federal Reserve to maintain interest rates at its meeting at the end of July, the turmoil surrounding its leadership undoubtedly brings new variables to the financial markets. Regarding the resignation rumors, a Federal Reserve spokesperson declined to comment, reiterating Powell's previous statement on April 4 that he intends to complete his term until May 2026.

## $2.5 Billion "Versailles" Controversy

The core of this controversy is the renovation project of the Federal Reserve's headquarters building located in Washington, D.C.

According to budget documents obtained through the Freedom of Information Act this Tuesday, the cost of the project has reached $2.5 billion, a surge of about 30% from the initial estimate of $1.9 billion.

**The project has been criticized for its exorbitant costs and luxurious plans.** South Carolina Republican Senator Tim Scott compared it to the "Palace of Versailles." Reports indicate that since this issue was exposed in April, Powell has "felt pressure" and has become "exhausted."

Powell's critics, including Pulte, accuse him of making misleading statements about the project during congressional hearings. At the Senate Banking Committee hearing on June 25, Powell insisted:

> There is no VIP dining room, no new marble, no dedicated elevator. No new water features, no beehives, and no rooftop terrace garden.

**However, these denials directly contradict the planning documents approved by the National Capital Planning Commission (NCPC) for the project in 2021.** Russ Vought, head of the White House Office of Management and Budget (OMB), questioned this in a letter on Thursday. Vought wrote in the letter:

> The President is extremely troubled by your management of the Federal Reserve system. Instead of attempting to rectify the Federal Reserve's financial situation, you have pushed for an extravagant renovation of the Washington headquarters.

Vought pointed out that if Powell modified the plans without NCPC approval, it could openly violate the National Capital Planning Act. **He has requested Powell to respond to a series of questions by next week.**

## Political Game Dubbed "4D Chess"

In addition to pressure from Congress and the White House Office of Management and Budget, Trump himself is also taking action.

On Thursday, Trump appointed three new members to the NCPC, which oversees federal development projects. With five voting members on the committee, this move is widely interpreted as another effort to exert greater pressure on Powell.

A senior government official told the media that the series of attacks against 72-year-old Powell is part of a "4D chess" game being played by the president and his allies, aimed at forcing him to resign. The official added:

> When no one wants you to stay at the party, why are you still there?

However, not all news points to Powell's imminent departure. A White House insider insisted that Powell will not leave, stating, "There are no plans to replace the Federal Reserve Chair."

The Federal Reserve's next interest rate meeting is scheduled for the end of July, and the consensus on Wall Street is that the current federal funds rate, which is in the range of 4.25%-4.5%, will remain unchanged. However, rumors about the Chair's potential resignation have introduced new uncertainties into the market.

## Online Buzz: Is a Fed Easing Coming?

Rumors of Powell's resignation are rampant, with about 10 months remaining in his term. Concerns about the stability of the Federal Reserve's leadership could affect monetary policy expectations and financial market trends.

Reports suggest that if Powell does resign, his most likely successors are National Economic Council Director Hassett, Treasury Secretary Mnuchin, or former Federal Reserve Governor Warsh. All three have previously expressed views favoring loose monetary policy.

Spencer Hakimian, founder of Tolou Asset Management, jokingly remarked that if Powell leaves, potential easing monetary policy could drive Bitcoin and gold prices soaring:

> **Are you ready for $250,000 Bitcoin and $5,000 gold?**
> 
> Some netizens even mockingly claimed that under massive easing, the value of the dollar would drop to zero.

> **The dollar will turn into toilet paper.**
> 
> However, Nick Timiraos from the "New Federal Reserve News Agency" holds an opposing view, posting on social media:

> **In the face of various online rumors, the primary response is often to choose to ignore them, just as television broadcasts do not capture streakers running onto Yankee Stadium.**
> 
> **Quoting Powell's words from six years ago: "I will never, ever, ever leave this position voluntarily under any circumstances before my term ends. No circumstances."**
> 
> **Powell also stated at the time: "I have never thought for a second that there would be any circumstances that would prevent me from completing my term, unless it was death."**
> 
>

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
