A senior official from the Trump administration stated that Federal Reserve Chairman Jerome Powell is "considering resigning" due to allegations that he may have lied to Congress about the $2.5 billion renovation project of the Federal Reserve's headquarters in Washington, which has been mockingly referred to as the "Versailles Palace."

Bill Pulte, who oversees Fannie Mae and Freddie Mac, said he heard that Powell might not complete his term. Another source indicated that Powell feels "exhausted" from the pressure and is also "isolated" within the government.

The market reacted positively to the possibility of Powell resigning, as a new Federal Reserve chairman appointed by Trump would likely adopt his proposals and lower interest rates, thereby stimulating economic growth and boosting financial markets.

President Trump has appointed three new members to the National Capital Planning Commission, a move seen as further pressure on Powell—Trump has previously criticized him for being "too slow" to cut rates.

Powell has denied that the renovation plan includes a VIP dining room, a private elevator, or new marble, but project documents from 2021 show the opposite, leading to accusations of perjury before Congress.