Original Title: (FHFA Requests Investigation of Jerome Powell for Bias Against Trump)
Author: Sham
Translation: Daisy, Mars Finance
William Pulte, Director of the Federal Housing Finance Agency (FHFA), is calling for Congress to investigate Federal Reserve Chairman Jerome Powell over allegations of misleading conduct related to a $2.5 billion headquarters renovation project.
Although Powell denies the existence of luxury upgrades, Federal Reserve documents confirm that the renovation plan includes private dining rooms, marble decor, and a rooftop garden, contradicting his testimony in the Senate.
This scandal comes at a time when the Federal Reserve is facing massive financial losses, inviting criticism from Trump and industry figures like Elon Musk.
The situation in Washington is heating up – and not just due to the weather. William Pulte, Director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, is targeting Federal Reserve Chairman Powell. His complaint? Powell's 'deceptive testimony' regarding a staggering $2.5 billion headquarters renovation project, which critics have dubbed the 'Versailles Plan.'
In a leaked statement obtained by the (New York Post), Pulte does not hide his stance. He wants Congress to investigate, accusing Powell of 'political bias' and claiming he 'openly lied' to lawmakers during recent testimony. 'This smells bad,' he wrote, 'Powell's statements are not just misleading – they constitute grounds for removal.' Pulte is firing on all cylinders.
Testimony questioned
The controversy centers on Powell's denial last week during testimony before the Senate Banking Committee that the renovation project for the Federal Reserve's headquarters included luxury amenities such as a VIP dining room, dedicated elevators, or a luxury rooftop garden.
'No marble, no new water features, no dedicated elevators,' Powell stated emphatically.
However... the facts seem otherwise. Documents submitted by the Federal Reserve to the National Capital Planning Commission (still publicly accessible) explicitly list the repairs, including private dining rooms, elevators for board members only, and vegetative terraces designed to attract 'urban wildlife.' These clearly contradict Powell's testimony.
Trump, Pulte, and the 'MAGA' microphone
President Trump has never hesitated to criticize Powell, and earlier this week he again took action, writing a letter to the Federal Reserve Chairman requesting a rate cut. Now, Pulte has joined the chorus and is reportedly considering whether Trump could 'for cause' fire Powell as pressure continues to mount.
A critic said: 'This is not just an over-budget construction project; it is an accountability issue. Taxpayers are footing the bill, while Powell seems indifferent.'
Don't forget – the budget for this renovation has already increased by 30% from the original estimate, ballooning from $1.9 billion to $2.5 billion.
Where did the money go?
According to the Federal Reserve's own documents, this renovation includes marble decor, high-end dining suites, rooftop gardens, and more. Notably, JPMorgan's new skyscraper in New York is expected to cost just $3 billion – and it is a 60-story building located in Manhattan. So it's natural to ask, how could the relatively small headquarters of the Federal Reserve in Washington possibly cost nearly the same?
Even Elon Musk has voiced that this situation is 'concerning' and suggested that oversight agencies conduct a thorough investigation.
Fiscal deficit and rising criticism
The timing of this scandal's outbreak is very unfortunate. The Federal Reserve is currently under scrutiny due to record financial losses – losing $114.6 billion just in 2023, primarily because interest expenses exceeded bond returns. Overall, the Federal Reserve's deferred asset liabilities have reached $233 billion. Until this deficit is cleared, the Federal Reserve will not be able to remit profits to the U.S. Treasury. This means less funding for areas such as education, defense, and healthcare.
So yes, while the Federal Reserve insists that these losses will not affect its operations, burning tens of billions on palace-like renovations in this context does indeed take a significant toll on its credibility.