The Trump administration signaled growing confidence Friday amid “reports” suggesting Federal Reserve Chairman Jerome Powell may be considering resignation. Though unconfirmed, the rumors were welcomed by senior administration officials and fueled by ongoing tensions between Powell and President Donald Trump over interest rate policy and fiscal stewardship.
Federal Housing Finance Agency Director William Pulte released a pointed statement supporting Powell’s possible departure. “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,” Pulte said.
The administration did not specify the origin of the reports, and Powell has made no public comment about stepping down. However, the remarks followed another day of direct criticism from President Trump, who has consistently pressured Powell to aggressively cut interest rates.
Speaking to reporters ahead of a trip to Texas to visit flood victims, Trump stated, “I think he’s doing a terrible job. I think we should be 3 points lower, interest rates. He’s costing our country a lot of money.”
“We should be No. 1, and we’re not, and that’s because of Jerome Powell,” Trump added.
Trump escalated his critique earlier in the week during a cabinet meeting, calling for Powell to “resign immediately” and accusing him of political favoritism. “He’s always late. But he wasn’t late with Biden before the election—he was cutting them like crazy,” Trump said. “He was trying to get them in, I guess.”
Despite Trump nominating Powell to the Fed chairmanship in 2018, their relationship has since deteriorated, particularly over monetary policy. Powell’s current term as Fed chair runs through May 2026, with his longer tenure on the Federal Reserve Board extending until January 2028.
Beyond interest rates, Powell is also facing intensified scrutiny over the $2.5 billion renovation of the Fed’s Washington, D.C., headquarters — a project sharply criticized for cost overruns and opulence.
“While continuing to run a deficit since FY23 (the first time in the Fed’s history), the Fed is way over budget on the renovation of its headquarters,” Office of Management and Budget Director Russ Vought said Thursday. He cited rooftop gardens, VIP elevators, and premium marble as examples of extravagance. “The cost per square foot is $1,923—double the cost for renovating an ordinary historic federal building. The Palace of Versailles would have cost $3 billion in today’s dollars!”
With pressure mounting from both the White House and Capitol Hill, Powell now faces dual criticism: first for maintaining high interest rates despite declining inflation, and second for overseeing costly renovations during a period of fiscal tightening and economic uncertainty.
