Original Title: 《FHFA Requests Investigation of Jerome Powell for Biased Against Trump》

Author: Sham

Translation: Daisy, Mars Finance

William Pulte, the director of the Federal Housing Finance Agency (FHFA), has called on Congress to investigate Federal Reserve Chairman Jerome Powell for allegedly misleading testimony related to a $2.5 billion headquarters renovation project.

Despite Powell denying any luxury upgrades, Federal Reserve documents confirm that the renovation plan includes a private dining room, marble decor, and a rooftop garden, which contradicts his statements during Senate testimony.

This scandal comes at a time when the Federal Reserve is facing significant financial losses, drawing criticism from Trump and industry figures like Elon Musk.

The situation in Washington is heating up—not just in terms of temperature. FHFA Director William Pulte, along with the heads of Fannie Mae and Freddie Mac, is directing his ire at Fed Chairman Powell. His grievance? Powell's "deceptive testimony" regarding a staggering $2.5 billion headquarters renovation project, which critics have dubbed the "Versailles Project."

In a leaked statement obtained by the New York Post, Pulte did not hold back his position. He hopes Congress will investigate, accusing Powell of "political bias" and "blatantly lying" 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 Under Scrutiny

The controversy centers on Powell's denial last week during testimony before the Senate Banking Committee that the Fed's headquarters renovation project included luxury amenities such as a VIP dining room, private elevators, or a lavish rooftop garden.

"There is no marble, no new water features, no private elevators," Powell stated emphatically.

However… the facts seem otherwise. Documents submitted by the Federal Reserve to the National Capital Planning Commission (which remain publicly accessible) explicitly list renovations including a private dining room, elevators for board members only, and a vegetated terrace designed to attract "urban wildlife." These details are in stark contrast to Powell's testimony.

Trump, Pulte, and the "MAGA" Microphone

President Trump has long been critical of Powell, and earlier this week he again took action, writing a letter to the Fed chairman demanding interest rate cuts. 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's a matter of accountability. Taxpayers are footing the bill, while Powell seems indifferent.'"

Let’s not forget—the renovation budget 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 Fed's own documents, the renovation includes marble decor, high-end dining suites, rooftop gardens, and more. Notably, JPMorgan's new skyscraper in New York is expected to cost only $3 billion—yet that is a 60-story entire building located in Manhattan. So, one naturally wonders how the relatively small headquarters of the Fed in Washington could cost nearly the same?

Even Elon Musk has weighed in, calling the situation "concerning" and suggesting that oversight agencies conduct a thorough investigation.

Fiscal Deficit and Rising Criticism

The timing of this scandal's emergence is particularly 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 Fed's deferred liabilities have reached $233 billion. Until this deficit is cleared, the Fed will not be able to remit profits to the U.S. Treasury. This means less funding support for areas like education, defense, and healthcare.

So yes, while the Fed insists that these losses will not affect its operations, burning through billions for a palace-like renovation in this context certainly undermines its credibility.

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