Federal Reserve Chairman Jerome Powell’s testimony about the Fed’s $2.5 billion headquarters renovation has been exposed as “deceptive” by Fannie Mae and Freddie Mac Chair William J. Pulte, who is now calling for a congressional investigation that could lead to Powell’s removal from office.
Key Takeaways
- William J. Pulte, chair of Fannie Mae and Freddie Mac, has called for Congress to investigate Jerome Powell over allegedly deceptive testimony about the Federal Reserve’s $2.5 billion headquarters renovation.
- Powell denied the existence of luxury features like private dining rooms, special elevators, and roof gardens during Senate testimony, but planning documents directly contradict these claims.
- The renovation cost has ballooned by 30% from the original $1.9 billion estimate, with critics comparing it to the “Palace of Versailles” amid the Fed’s own financial struggles.
- President Trump could potentially remove Powell “for cause” based on the alleged false testimony and mismanagement of federal resources.
- The Federal Reserve has posted $233 billion in losses over the past three years, marking its first time operating in the red.
Housing Chief Calls for Powell Investigation
The head of America’s largest housing finance entities has publicly called for Jerome Powell to face serious consequences for his statements to Congress. William J. Pulte, who oversees Fannie Mae and Freddie Mac, is pushing legislators to launch a formal investigation into what he describes as deliberately misleading testimony by the Federal Reserve chairman. Pulte specifically questioned Powell’s honesty regarding the extravagant $2.5 billion renovation of the Fed’s Washington headquarters, suggesting the deception rises to the level of “malfeasance” and could justify Powell’s removal from office.
“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.
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
Powell’s Testimony Contradicted by Documents
During a recent Senate Banking Committee hearing, Powell dismissed concerns about the Fed’s headquarters renovation by flatly denying reports of lavish additions. “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, official planning documents for the project directly contradict these claims, detailing plans for private dining rooms, executive elevators, vegetated roof terraces, new marble installations, and decorative water features.
“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.
Former Fed advisor Andrew T. Levin has taken an even stronger position, insisting that Powell must face consequences for his statements. “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,” Levin stated. When questioned about the project’s substantial cost overruns, Powell dismissively responded that they “are what they are,” showing little concern for taxpayer funds.
“Palace of Versailles” Amid Financial Turmoil
The timing of this extravagant renovation has drawn particular criticism as the Federal Reserve faces unprecedented financial challenges. The Fed has recorded losses totaling $233 billion over the past three years, including a record $114.6 billion loss in 2023 – the first time the central bank has operated in the red. These losses are recorded as a “deferred asset” that must be repaid before any funds can be directed to other federal budget priorities, effectively increasing the national debt burden.
Critics have labeled the headquarters renovation a “vanity project” comparable to JPMorgan’s $3 billion Manhattan headquarters. The comparison to the “Palace of Versailles” has resonated with many observers who question why the Fed is pursuing such opulence while American families struggle with persistent inflation – a problem many economists attribute to Powell’s delayed response to early inflation warning signs. President Trump has been a vocal critic of Powell’s leadership, recently demanding that “Too Late” Powell “resign immediately!!!”
Political Implications
Pulte’s call for investigation carries significant political weight given his position overseeing America’s housing finance system and his previous alignment with President Trump’s economic policies. As chair of Fannie Mae and Freddie Mac, Pulte has consistently advocated for lower interest rates to support housing affordability – a position shared by the Trump administration. The accusation of “political bias” against Powell suggests potential resistance to the administration’s economic priorities at a time when decisive action is needed.
With mounting evidence that Powell may have misled Congress under oath, the pressure for accountability continues to build. Federal Reserve chairs can be removed by the president “for cause,” and false testimony to Congress could potentially meet that threshold. As inflation remains a primary concern for American families, this scandal raises serious questions about leadership at one of the nation’s most powerful economic institutions – especially when that leadership appears comfortable spending billions on luxury renovations while dismissing legitimate oversight concerns.
