Fed Chair Jerome Powell is at the center of a spiraling scandal as Congress faces mounting pressure to launch a full-scale investigation into a $2.5 billion Fed project meltdown.

$2.5B Federal Reserve Project Sparks Allegations of Deception and Mismanagement

Accusations of fiscal mismanagement and alleged deception have intensified scrutiny of Federal Reserve Chair Jerome Powell, threatening confidence in U.S. financial governance. Director of the U.S. Federal Housing Finance Agency (FHFA) and Chairman of Fannie Mae and Freddie Mac, William J. Pulte, announced on July 2 that he is urging Congress to open an investigation into Powell.

The demand centers on what Pulte described as misleading testimony before the Senate and irregularities in a $2.5 billion renovation project involving the Federal Reserve’s facilities. Pulte stated on social media platform X:

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.’ Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress.

“This is nothing short of malfeasance and is worthy of ‘for cause,’” he stressed, concluding: “Chairman Powell needs to be investigated by Congress immediately.”

The renovation project, which reportedly includes a private dining room, roof terrace, and other high-end features, drew fire from U.S. Senator Cynthia Lummis (R-WY). She alleged that Powell “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.” Lummis asserted this behavior reflected what she described as Powell’s “mismanagement and ‘don’t bother me’ attitude.”

While critics point to the alleged misrepresentations and spending as serious breaches, others argue that infrastructure improvements are not inherently improper and caution against politicizing the Federal Reserve’s operations. Supporters of Powell may see these calls as disruptive to the Fed’s autonomy and counterproductive in addressing core monetary challenges.

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