Federal Reserve Chair Jerome Powell has been accused of lying under oath about the Fed’s lavish $2.5 billion headquarters renovation, as Fannie Mae and Freddie Mac Chair William Pulte demands a Congressional investigation into what he calls “deceptive” testimony.
Key Takeaways
- William Pulte, head of Fannie Mae and Freddie Mac, has called for Congress to investigate Federal Reserve Chair Jerome Powell over allegedly misleading testimony regarding the $2.5 billion Fed headquarters renovation
- Powell denied the existence of luxury features like private dining rooms, marble finishes, and special elevators during Senate testimony, despite planning documents confirming these elements
- The renovation cost has ballooned by 30% from the original $1.9 billion estimate while the Fed has lost $233 billion over the past three years
- Pulte suggests Powell’s “political bias” and “deceptive testimony” provide grounds for President Trump to remove him “for cause”
- Senator Cynthia Lummis has joined criticism of Powell, citing his “factually inaccurate statements” and “don’t bother me” attitude
Top Housing Official Accuses Fed Chair of Deception
William Pulte, the Trump-appointed chair of Fannie Mae and Freddie Mac, has launched a scathing attack on Federal Reserve Chairman Jerome Powell, accusing him of providing false information to Congress regarding the Federal Reserve’s extravagant headquarters renovation in Washington, D.C. The renovation project, which critics have dubbed the “Palace of Versailles,” has seen costs soar to $2.5 billion, representing a 30% increase from the original $1.9 billion estimate. Pulte’s call for a congressional investigation comes at a time when the Federal Reserve is already facing intense scrutiny over its financial management.
The boss of Fannie Mae and Freddie Mac on Wednesday claimed Federal Reserve Chair Jerome Powell could lose his job over his allegedly “deceptive” testimony to Congress over the central bank’s lavish $2.5 billion revamp of its DC headquarters. LINK: https://t.co/aBLg0BqLBo
— Pulte (@pulte) July 2, 2025
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause’,” said William Pulte, Chair of Fannie Mae and Freddie Mac.
Powell’s Testimony Contradicted by Official Documents
During a Senate Banking Committee hearing, Powell adamantly denied reports of luxury features being included in the renovation project. “There’s no VIP dining room, there’s no new marble. There are no special elevators. There are no new water features, there’s no beehives, and there’s no roof terrace gardens,” Powell testified under oath. However, this testimony directly contradicts official planning documents for the renovation, which specifically mention private dining rooms, a private elevator for the Fed chair, vegetated roof terraces, new marble, and water features among the planned improvements to the headquarters building.
“He made a number of factually inaccurate statements to the Committee regarding the Fed’s plush private dining room and elevator, skylights, water features, and roof terrace. This is typical of the mismanagement and ‘don’t bother me’ attitude that Chair Powell has always shown,” said Sen. Cynthia Lummis, in her criticism of Powell’s testimony.
The discrepancy between Powell’s testimony and the documented plans has raised serious concerns about potential perjury. Andrew T. Levin, a former Fed advisor, has urged Congress to take action, stating: “A top Fed official cannot be permitted to make false statements under oath at a congressional hearing. Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate.”
Financial Mismanagement Amid Economic Challenges
The controversy over the Fed’s headquarters renovation comes at a particularly troubling time for the central bank’s finances. The Federal Reserve has reported staggering losses of $233 billion over the past three years, including a record $114.6 billion loss in 2023 – marking the first time the Fed has operated in the red. These losses are recorded as a “deferred asset” that must be paid down before funds can be allocated to other federal budget priorities, effectively creating a hidden burden on taxpayers that receives little public attention.
“‘Too Late’ should resign immediately!!!,” said President Trump, referring to Powell’s handling of interest rates and Fed management.
When questioned about the ballooning costs of the renovation during his testimony, Powell appeared dismissive of taxpayer concerns, stating that “cost overruns are what they are.” This cavalier attitude toward public funds has drawn criticism from numerous quarters, including from business leaders like Elon Musk, who have called for greater scrutiny of the Federal Reserve’s spending practices. Critics have described the renovation as a “vanity project” comparable to JPMorgan’s $3 billion headquarters in Manhattan – an unflattering comparison for an institution funded by taxpayer dollars.
Potential Consequences for Powell’s Leadership
Pulte’s call for an investigation has significant implications for Powell’s tenure at the Federal Reserve. The Fannie Mae and Freddie Mac chair explicitly suggested that Powell’s conduct constitutes “malfeasance” and provides sufficient grounds for removal by President Trump. This aligns with the President’s previous criticisms of Powell’s management of monetary policy, particularly regarding interest rates. Pulte, a known supporter of Trump’s financial strategies advocating for lower interest rates, has positioned this controversy as a matter of both financial mismanagement and political accountability.
“Political bias and deceptive Senate testimony are grounds for Powell’s removal”, according to William J. Pulte, Chair of Fannie Mae and Freddie Mac.
As pressure mounts from both government officials and financial experts, Powell’s position appears increasingly precarious. The controversy highlights broader concerns about transparency and fiscal responsibility within the Federal Reserve, an institution that wields enormous influence over the American economy yet operates with limited public oversight. With the renovation costs continuing to climb and Powell’s credibility now in question, this scandal threatens to undermine confidence in the Fed’s leadership at a critical juncture for the nation’s economic stability.
