Fannie Mae and Freddie Mac Chairman William Pulte demands congressional investigation into Federal Reserve Chair Jerome Powell for allegedly lying under oath about a scandalous $2.5 billion “Palace of Versailles” headquarters renovation.
Key Takeaways
- William Pulte, head of Fannie Mae and Freddie Mac, has called for Congress to investigate Fed Chair Powell over “deceptive” testimony regarding a $2.5 billion renovation of the Fed’s headquarters.
- Powell’s testimony denying luxury features directly contradicts official planning documents that confirm private dining rooms, special elevators, roof terraces, and water features.
- The renovation cost has ballooned by 30% from the original $1.9 billion estimate while the Fed has posted $233 billion in losses over the past three years.
- Pulte suggests Powell’s alleged false statements constitute grounds for President Trump to remove him “for cause.”
- Senator Cynthia Lummis criticized Powell for making “factually inaccurate statements” in what she called typical of his “mismanagement and ‘don’t bother me’ attitude.”
Powell’s “Deceptive” Testimony Under Fire
The Federal Reserve Chairman Jerome Powell faces serious allegations of providing false testimony to Congress regarding the lavish renovation of the Fed’s Washington headquarters. During a recent Senate Banking Committee hearing, Powell flatly denied reports of luxury additions to the building, stating: “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.” However, official planning documents directly contradict these denials, explicitly mentioning private dining rooms, a private elevator, vegetated roof terraces, new marble installations, and decorative water features as part of the project.
“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, Chairman 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
Ballooning Costs Amid Federal Reserve Losses
The renovation’s cost has soared from an initial estimate of $1.9 billion to $2.5 billion – a staggering 30% increase that Powell casually dismissed, saying cost overruns “are what they are.” This cavalier attitude toward taxpayer money comes at a particularly troubling time for the Federal Reserve’s finances. The Fed has reported an alarming $233 billion in losses over the past three years, including $114.6 billion in 2023 alone – marking its first year operating in the red. These losses are recorded as a “deferred asset” that must be paid down before any funds can be directed to other federal budget priorities.
“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.
Calls for Accountability and Removal
The controversial renovation has drawn criticism from numerous quarters, with the lavish project being mockingly compared to the “Palace of Versailles” and called a “vanity project” similar to JPMorgan’s $3 billion Manhattan headquarters. Former Fed advisor Andrew T. Levin has urged Congress to take disciplinary action against Powell, emphasizing the seriousness of giving false testimony under oath. Meanwhile, President Trump has weighed in on the controversy, demanding that Powell, whom he has previously nicknamed “Too Late” for his handling of interest rates, “should resign immediately!!!”
“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,” said Andrew T. Levin, a former Fed advisor.
Pulte, who has previously aligned with President Trump’s economic policies, particularly in advocating for lower interest rates, has now taken his criticism to a new level by formally requesting a congressional investigation. His allegations of “political bias” and “malfeasance” against Powell come as the Fed faces scrutiny for its financial management. The central bank’s interest costs have exceeded its earnings due to rate hikes implemented to control inflation – a policy approach that both Pulte and President Trump have consistently criticized as harmful to economic growth and prosperity.
