The head of the US Federal Reserve, Jerome Powell, could resign from his post before the expiry of his term in May 2026, local media reports said.
Powell is facing the heat from critics after the headquarters of the Fed in Washington was renovated at a cost of about USD 2.5 billion, reports added.
Earlier, the renovation was expected to be completed for USD 1.9 billion but surged dramatically to USD 2.5 billion.
Senator Tim Scott said that the new design appears to be like the “Palace of Versailles.”
How True Are The Accusations on Powell?
However, Powell dismissed the complaints and said that news about new additions like VIP dining rooms and marble in the building is “misleading.”
But planning papers from the year 2021 reportedly revealed that these new designs were approved.
After these reports, the US government under Donald Trump criticized Powell for “gross mismanagement.”
Russ Vought, the budget chief, accused him of keeping the Congress in the dark over the cost of renovation.
A letter by Vought says that President Trump is “troubled” at the reports and seeks a reply from Powell in a “week.”
Moreover, Trump has changed three officials who were overseeing the development inside the Fed’s building.
Trump has also called Powell “Too Slow” due to his refusal to slash interest rates.
Reports suggest that Donald Trump wants the removal of Powell, but it is easier said than done.
The American law states that the heads of the Federal Reserve can only be removed over issues such as “misconduct.”
Moreover, the courts provide full support to their independence.
Who Could Be The Next Chair Of The Federal Reserve?
Experts claim that the renovation charges are an excuse to push Powell out of the Federal Reserve because Trump’s views on the economy are different from Powell’s.
However, if Powell does resign, top candidates to replace him would be Trump’s economic advisor Kevin Hassett or Scott Bessent, the treasury, reports said.
In response, Powell has stated that he will complete his full term, but experts say he is feeling “fatigued” by the accusations.
The next meeting of the Fed officials is scheduled for July 30-31.
Also Read: Why Trump Is Targeting Federal Reserve Chair Jerome Powell Now More Than Ever
