President Donald Trump demands Federal Reserve Chair Jerome Powell’s immediate resignation following allegations that Powell lied to Congress about lavish renovations at the Fed’s headquarters, intensifying political conflict over US economic policy.

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On July 2, 2025,US President Donald Trump renewed his call for Federal Reserve Chair Jerome Powell’s immediate resignation. This demand follows accusations by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), who urged Congress to investigate Powell for allegedly providing false testimony before the Senate. Trump, who has criticized Powell’s monetary policies for months, escalated his attack by labeling Powell “Too Late” and insisting he should step down immediately.

The core of the controversy lies in Powell’s sworn testimony denying extravagant spending on the Federal Reserve’s Eccles building renovation in Washington, D.C. Powell told the Senate Banking Committee that the renovation did not include luxury features such as VIP dining rooms, rooftop gardens, special elevators, or new fountains.

However, official project documents and reports by The New York Post contradict these claims, revealing that the renovation budget ballooned from $1.9 billion to $2.5 billion and included many of the denied amenities.

Donald J. Trump Truth Social 06.30.25 01:09 PM EST

Jerome “Too Late” Powell, and his entire Board, should be ashamed of themselves for allowing this to happen to the United States. They have one of the easiest, yet most prestigious, jobs in America, and they have FAILED — And… pic.twitter.com/hXKHbZ7R9l

— Commentary Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) June 30, 2025

Senator Tim Scott sharply criticized the project during the hearing, comparing the renovation to the “Palace of Versailles” and demanding accountability. Powell’s denial of these costly features under oath has been labeled by critics as misleading, prompting calls for congressional investigation and possible removal “for cause,” as argued by FHFA director Pulte.

Jerome Powell, appointed by Trump in 2017, has faced sustained criticism from the president, especially regarding the Federal Reserve’s cautious approach to lowering interest rates. Powell has maintained that the Fed must carefully balance inflation control with economic growth, warning that lowering rates too quickly could jeopardize progress.

This clash illustrates the contradictions of neoliberal capitalism and the political pressures exerted on supposedly independent institutions. The focus on Powell’s testimony about renovation spending also highlights broader concerns about elite privilege and mismanagement within US financial institutions.

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