Calls Grow to Investigate Jerome Powell Over $2.5B Fed Spending

Federal Reserve Chair Jerome Powell is facing growing calls for a congressional investigation following controversy over a $2.5 billion renovation project. Allegations of misleading testimony and excessive spending have put Powell under fire, as lawmakers and agency heads question both the project and his handling of it.

Good to know

• William J. Pulte called for Powell’s removal and a full investigation.
• The $2.5B Fed building project includes luxury features like a private dining room and rooftop terrace.
• Senator Cynthia Lummis also criticized Powell for inaccurate testimony.

The project in question involves upgrades to Federal Reserve facilities, with reported features such as a private dining area, water installations, and a rooftop terrace. Critics are questioning not just the cost, but also how the project was explained during Senate hearings.

William J. Pulte, who leads Fannie Mae and Freddie Mac as well as the FHFA, took to X on July 2 to say he believes Powell’s behavior warrants removal. “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,” he wrote.

Pulte went further, calling the entire matter “malfeasance” and saying the situation requires immediate action from lawmakers.

Senator Cynthia Lummis has also raised concerns. She pointed to Powell’s “factually inaccurate statements” made during hearings and highlighted the extravagant nature of the planned renovations. In her view, the Fed chair has shown mismanagement and indifference to oversight.

Not everyone agrees with that take. Some observers argue that building improvements on their own are not inherently wrong, and that pushing for investigations risks undermining the independence of the Federal Reserve. For now, the pressure is building, and it remains to be seen whether Congress will respond with a formal inquiry.