Shock from the Fed: Could Powell Resign Over the $2.5 Billion Headquarters?

Fed Chairman Jerome Powell is under significant pressure amid reports that he is considering resigning before his term ends. This is partly due to the $2.5 billion renovation project for the Fed headquarters in Washington, which has been criticized as a waste of public funds. Senator Tim Scott likened it to the 'Palace of Versailles,' while Powell countered that many descriptions have been 'Inaccurate and Misleading.'

Trump and Financial Sector Pressure for Interest Rate Cuts

Former President Donald Trump – who appointed Powell in 2017 – continues to demand a significant reduction in interest rates from the current level of 4.25%–4.5% down to 1.25%–1.5%.

Trump said: 'I have called him every name possible, just to make him cut interest rates.'

Financial expert Peter Schiff also believes that if Powell leaves office, his successor may accelerate interest rate cuts, although he warns that this could 'nail the coffin of the USD.'

The Upcoming Monetary Policy Scenario

William Pulte, head of the Federal Housing Finance Agency, publicly supports Powell's resignation: 'I believe this is the right decision for America, and the economy will explode.'

However, the Fed asserts that Powell remains committed to completing his term until May 2026.

The next Fed policy meeting is scheduled for July 29–30, with a 93% chance of keeping interest rates unchanged. Meanwhile, the Supreme Court has just limited the President's authority to dismiss the Fed Chairman, making Powell's future even more unpredictable.