- FHFA Director William Pulte has called for a Congressional probe into Fed Chair Jerome Powell over allegedly deceptive testimony tied to a $2.5B headquarters renovation.
- Despite Powell denying lavish upgrades, Fed documents confirm plans for private dining, marble accents, and rooftop gardens, contradicting his Senate remarks.
- The scandal unfolds as the Fed faces massive financial losses, drawing criticism from both Trump and industry leaders like Elon Musk.
Things are heating up in D.C.—and not just the weather. William Pulte, the director of the Federal Housing Finance Agency and head of Fannie Mae and Freddie Mac, is taking aim at none other than Federal Reserve Chairman Jerome Powell. His beef? Allegedly deceptive testimony regarding a jaw-dropping $2.5 billion renovation of the Fed’s headquarters, a project critics have dubbed the “Palace of Versailles.”
In a leaked statement obtained by The Post, Pulte didn’t mince words. He wants Congress to investigate Powell, accusing the Fed chair of “political bias” and straight-up lying to lawmakers during recent testimony. “This smells rotten,” he wrote. “Powell’s statements weren’t just misleading—they were grounds for removal,” Pulte added, taking the gloves off.
A Testimony Under Fire
The controversy centers on Powell’s appearance last week before the Senate Banking Committee, where he denied that the massive Fed headquarters overhaul included extravagant features like VIP dining rooms, private elevators, or lavish rooftop gardens.
“There’s no marble, no new water features, no special elevators,” Powell said flatly.
Except… turns out there are. The Fed’s own filings with the National Capital Planning Commission, still publicly available, spell out plans for restored private dining areas, a governors-only elevator, and vegetated terraces designed to attract “urban wildlife.” All of which flies directly in the face of Powell’s testimony. Yikes.
Trump, Pulte, and the MAGA Megaphone
President Trump, never shy about calling out Powell, piled on earlier this week by sending the Fed chair a handwritten note demanding rate cuts. Now with Pulte joining the chorus—and reportedly mulling whether Trump could fire Powell “for cause”—the pressure is stacking up.
“This isn’t just about some overpriced building,” one critic said. “It’s about accountability. Taxpayers are footing this bill while Powell shrugs and says ‘it is what it is.’”
And let’s not forget—the budget for the renovation has already ballooned 30% over its original estimate, jumping from $1.9B to $2.5B.
Where’s the Money Going?
According to the Fed’s own documents, the renovation includes marble finishes, elevated dining suites, a roof garden, and more. It’s worth noting, JPMorgan’s swanky new NYC skyscraper will reportedly cost just $3B—for an entire 60-story tower in Manhattan. So naturally, folks are asking how the Fed’s relatively modest-sized HQ in D.C. is somehow approaching that cost.
Even Elon Musk chimed in, calling the situation “an eyebrow raiser” and suggesting it’s worth a deeper dive by oversight groups.
Red Ink and Rising Criticism
This scandal couldn’t come at a worse time. The Fed is already under scrutiny for record-breaking losses—$114.6 billion in 2023 alone—mostly thanks to rising interest payments outpacing bond returns. In total, the central bank’s deferred asset tab has hit $233 billion. And until that’s paid down, the Fed can’t pass profits back to the U.S. Treasury. That means less money for things like education, defense, and healthcare.
So yeah, while the Fed insists these losses don’t impact operations, the optics of blowing billions on a palace-like revamp aren’t exactly helping their credibility.
