White House Responds to Reports Fed Chair Powell May Resign

The Trump administration is signaling support for Jerome Powell’s resignation as Federal Reserve Chair, citing his refusal to lower interest rates and the ballooning cost of Fed headquarters renovations.

Key Facts:

Federal Housing Finance Agency Director William Pulte said he was “encouraged” by reports that Powell may resign.
President Trump slammed Powell for keeping interest rates too high and suggested the economy would benefit if he stepped down.
Powell’s term as Fed Chair ends in May 2026, though he remains a Fed Board member through January 2028.
Trump claimed Powell cut rates to help Biden before the 2020 election but has been slow to act since.
The Fed is facing backlash for a $2.5 billion renovation of its D.C. headquarters—$700 million over budget.

The Rest of The Story:

Trump officials are turning up the pressure on Federal Reserve Chair Jerome Powell, pointing to both his monetary policy decisions and a costly renovation project as reasons he should step down.

William Pulte, Director of the Federal Housing Finance Agency, issued a statement saying, “I’m encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom.”

President Trump echoed that sentiment in blunt terms while speaking to reporters.

“I think he’s doing a terrible job,” Trump said.

“I think we should be 3 points lower, interest rates. He’s costing our country a lot of money.”

He added, “We should be No. 1, and we’re not, and that’s because of Jerome Powell.”

🚨 JUST IN: President Trump accuses Fed Chair Jerome Powell of costing the US a TON of money by keeping interest rates so high.

"We should be 3 points lower!"

"We should be number 1, and we're not, because of Jerome Powell."

I am with @Pulte on this. He must RESIGN. pic.twitter.com/dom8HzgtrR

— Eric Daugherty (@EricLDaugh) July 11, 2025

This isn’t the first time Trump has publicly criticized Powell.

At a cabinet meeting earlier in the week, the president said Powell should “resign immediately” and suggested he acted politically before the 2020 election by cutting rates to benefit Democrats.

“He was cutting them like crazy before the election with Kamala and Biden,” Trump said.

In addition to economic complaints, the administration has turned a spotlight on Powell’s management of the Federal Reserve’s headquarters renovation.

Office of Management and Budget Director Russ Vought reported the project’s cost has ballooned to $2.5 billion.

Vought cited luxury features such as rooftop gardens, VIP elevators, and premium marble, calling the project “way over budget” and sarcastically noting it rivals “the Palace of Versailles.”

Powell has remained silent in public about the resignation rumors.

His term continues through 2026, but growing scrutiny may impact his future.

Commentary:

Jerome Powell was supposed to be the steady hand guiding the U.S. economy through turbulent times. Instead, he’s shown himself to be anything but neutral.

His reluctance to lower interest rates despite economic headwinds has hurt American consumers, businesses, and retirees.

In a moment that calls for decisive pro-growth action, Powell has stuck to a script that’s strangling growth.

The contrast in Powell’s actions before and after the 2020 election speaks volumes.

He slashed rates rapidly during Biden’s run-up to power, but now—under pressure to ease inflation and encourage investment—he’s dragging his feet.

If that’s not political, what is?

Trump is right to want him out. When the Fed’s leader starts playing favorites, the American people pay the price.

Powell has made clear he’s more concerned with elite consensus than everyday prosperity.

His refusal to adapt monetary policy to real-world needs shows just how out of touch the Fed has become under his leadership.

Even worse, the Fed’s jaw-dropping $2.5 billion office renovation—complete with luxury rooftop gardens and marble finishes—feels like a slap in the face to working Americans struggling to afford groceries and gas.

If Powell can’t manage his own building budget, how can he be trusted with the nation’s monetary policy?

The Federal Reserve should not be a palace for the elite. It should be focused on one mission: stable prices and a strong economy.

Under Powell, it’s failed both. It’s time for change. Powell should do the honorable thing and resign.

That would clear the path for a leader who will prioritize the economic well-being of American families and stop playing politics with the interest rate.

Resignation would also avoid an ugly showdown, which is in everyone’s interest.

If Powell wants to preserve the institution’s reputation, he’ll step aside. If he refuses, the calls for his removal will only grow louder—and they’ll be justified.

The Bottom Line:

Jerome Powell is facing growing pressure from President Trump and his allies to resign over high interest rates and a controversial, lavish Fed renovation.

Trump believes Powell’s leadership has cost the U.S. economy growth and money.

The message is clear: Powell’s time may be up—and the nation’s economic future may depend on it.