President Trump is demanding Fed Chair Jerome Powell resign “immediately” over a $2.5 billion “Palace of Versailles” headquarters renovation that has Congress fuming—and it’s just the beginning of Powell’s problems.
At a Glance
- President Donald Trump has demanded the immediate resignation of Federal Reserve Chairman Jerome Powell.
- The demand comes amid a growing scandal over a $2.5 billion renovation of the Fed’s headquarters, which critics have dubbed the “Palace of Versailles.”
- Powell is accused of misleading Congress about the luxury features of the renovation, which could be legal grounds for his removal “for cause.”
- Trump has also resurrected his criticism of Powell’s monetary policy, nicknaming him “Too Late” for his handling of interest rates.
The Fed’s $2.5 Billion “Palace of Versailles”
While American families are struggling with inflation, Federal Reserve Chairman Jerome Powell has been overseeing a lavish, $2.5 billion renovation of the Fed’s headquarters in Washington, D.C. The project’s cost has ballooned from an initial $1.9 billion estimate and has been slammed by critics like Senate Banking Committee Chairman Tim Scott as being akin to the “Palace of Versailles.”
When questioned by Congress, Powell denied the inclusion of luxury features like VIP dining rooms or rooftop gardens. However, a top housing finance official has called Powell’s statements “deceptive,” raising the explosive question of whether the Fed Chair deliberately misled Congress.
Trump to Powell: “Resign Immediately”
President Donald Trump has seized on the scandal, demanding Powell’s immediate resignation if the allegations are true. “Well, then he should resign immediately,” Trump told reporters during a cabinet meeting. “It’s OK with me. I think he’s terrible.”
The demand for his resignation isn’t just about the renovation. Trump has also renewed his long-standing criticism of Powell’s handling of the economy, giving him a new nickname: “Too Late.”
“I call him ‘Too Late.’ He’s always late,” Trump said, according to the New York Post. “But he wasn’t late with Biden before the election; he was cutting [rates] like crazy.” Trump argues that Powell’s interest rate policies have harmed the economy while providing political cover for the previous administration.
Can the President Fire the Fed Chair?
The escalating feud has raised questions about whether Trump can remove Powell from his post. A president cannot fire a Fed chair over policy disagreements, but they can be removed “for cause.” As reported by Fox Business, legal experts believe that proving Powell deliberately misled Congress could potentially meet that high legal standard.
The controversy comes as the Fed has reported staggering operating losses of $227 billion over the past three years, making the extravagant headquarters renovation particularly galling to taxpayers. The administration is reportedly already considering potential replacements for Powell, including Treasury Secretary Scott Bessent and former Fed Governor Kevin Warsh.
The Fed and it's ballooning $2.5 Billion Renovation
"…Originally budgeted at $1.9 billion in 2019, the estimated costs to renovate the historic Eccles Building and three adjacent structures in downtown D.C. increased to $2.1 billion as of June 2020.
The project budget has… https://t.co/mMy64DSMKU pic.twitter.com/dvRkd3O5AB
— kristen shaughnessy (@kshaughnessy2) July 7, 2025
