- FHFA Director William Pulte has known as for a Congressional probe into Fed Chair Jerome Powell over allegedly misleading testimony tied to a $2.5B headquarters renovation.
- Regardless of Powell denying lavish upgrades, Fed paperwork affirm plans for personal eating, marble accents, and rooftop gardens, contradicting his Senate remarks.
- The scandal unfolds because the Fed faces large monetary losses, drawing criticism from each Trump and business leaders like Elon Musk.
Issues are heating up in D.C.—and never simply the climate. William Pulte, the director of the Federal Housing Finance Company and head of Fannie Mae and Freddie Mac, is taking purpose at none aside from Federal Reserve Chairman Jerome Powell. His beef? Allegedly misleading testimony relating to a jaw-dropping $2.5 billion renovation of the Fed’s headquarters, a undertaking critics have dubbed the “Palace of Versailles.”
In a leaked assertion obtained by The Publish, Pulte didn’t mince phrases. He desires Congress to analyze Powell, accusing the Fed chair of “political bias” and straight-up mendacity to lawmakers throughout latest testimony. “This smells rotten,” he wrote. “Powell’s statements weren’t simply deceptive—they had been grounds for elimination,” Pulte added, taking the gloves off.
A Testimony Underneath Fireplace
The controversy facilities on Powell’s look final week earlier than the Senate Banking Committee, the place he denied that the large Fed headquarters overhaul included extravagant options like VIP eating rooms, personal elevators, or lavish rooftop gardens.
“There’s no marble, no new water options, no particular elevators,” Powell mentioned flatly.
Besides… turns on the market are. The Fed’s personal filings with the Nationwide Capital Planning Fee, nonetheless publicly out there, spell out plans for restored personal eating areas, a governors-only elevator, and vegetated terraces designed to draw “city wildlife.” All of which flies immediately within the face of Powell’s testimony. Yikes.
Trump, Pulte, and the MAGA Megaphone
President Trump, by no means shy about calling out Powell, piled on earlier this week by sending the Fed chair a handwritten be aware demanding fee cuts. Now with Pulte becoming a member of the refrain—and reportedly mulling whether or not Trump might fireplace Powell “for trigger”—the stress is stacking up.
“This isn’t nearly some overpriced constructing,” one critic mentioned. “It’s about accountability. Taxpayers are footing this invoice whereas Powell shrugs and says ‘it’s what it’s.’”
And let’s not neglect—the funds for the renovation has already ballooned 30% over its unique estimate, leaping from $1.9B to $2.5B.
The place’s the Cash Going?
Based on the Fed’s personal paperwork, the renovation contains marble finishes, elevated eating suites, a roof backyard, and extra. It’s value noting, JPMorgan’s swanky new NYC skyscraper will reportedly price simply $3B—for a whole 60-story tower in Manhattan. So naturally, of us are asking how the Fed’s comparatively modest-sized HQ in D.C. is one way or the other approaching that price.
Even Elon Musk chimed in, calling the scenario “an eyebrow raiser” and suggesting it’s value a deeper dive by oversight teams.
Crimson Ink and Rising Criticism
This scandal couldn’t come at a worse time. The Fed is already beneath scrutiny for record-breaking losses—$114.6 billion in 2023 alone—principally due to rising curiosity funds outpacing bond returns. In whole, the central financial institution’s deferred asset tab has hit $233 billion. And till that’s paid down, the Fed can’t go earnings again to the U.S. Treasury. Which means much less cash for issues like training, protection, and healthcare.
So yeah, whereas the Fed insists these losses don’t affect operations, the optics of blowing billions on a palace-like revamp aren’t precisely serving to their credibility.