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Fed Chair Jerome Powell Accused of Lying to Congress About $2.5 Billion Federal Reserve Renovation
Federal Reserve Chair Jerome Powell is under mounting pressure after being accused of misleading Congress during sworn testimony about a $2.5 billion renovation of the Fed’s Washington, D.C. headquarters. Lawmakers and former Fed officials claim Powell’s statements sharply contradict planning documents submitted years ago.
In a Senate Banking Committee hearing last week, Powell rejected claims that the renovation was bloated or excessive. He specifically denied the existence of VIP dining rooms, private elevators, rooftop gardens, and luxurious features like marble and water installations.
“There’s no VIP dining room, no new marble, no special elevators, no rooftop terrace gardens,” Powell testified.
But documents submitted to the National Capital Planning Commission in 2021 tell a different story. The plans specifically mention restoring private dining rooms on the fourth floor, extending a governor-exclusive elevator, installing rooftop gardens designed for “urban wildlife and pollinators,” and new marble and water features throughout the facility.
Senator Cynthia Lummis criticized Powell’s testimony, saying he made “factually inaccurate statements” and appeared unprepared. “This is typical of the mismanagement and arrogance we’ve come to expect,” she added.
Dartmouth economics professor Andrew T. Levin, a former Fed adviser, was blunt in his response: “A top Fed official cannot lie under oath. If these statements were knowingly false, Powell should be censured by the Senate.”
The backlash is compounded by the spiraling costs of the renovation, which have jumped 30% from the original $1.9 billion estimate to $2.5 billion. When asked about the budget overruns, Powell simply said, “The cost overruns are what they are.”
The controversy is surfacing at a time when the Federal Reserve is facing financial difficulties. Over the last three years, the Fed has accumulated more than $230 billion in losses, with a record $114.6 billion loss posted in 2023 alone. These losses prevent the Fed from returning profits to the U.S. Treasury, which in turn affects funding for defense, education, and health services.
Public and political frustration is rising fast. Senator Tim Scott called the headquarters project “a luxury government monument,” while Elon Musk criticized the price tag as “an eyebrow raiser” that should be thoroughly investigated.
As pressure mounts, lawmakers are now considering whether Powell should face censure or additional oversight hearings for potentially misleading Congress and the American public.
