Jerome Powell accused of lying to Congress over $2.5B ‘Palace of Versailles’ HQ revamp
Federal Reserve Chair Jerome Powell is facing accusations of misleading Congress after denying that a $2.5 billion renovation of the central bank’s Washington headquarters would include extravagant amenities. Some are calling for him to be held accountable for his statements, as reported by The Post.
In response to The Post’s exclusive report in April, Powell refuted the claims made about the lavish renovation project during questioning by the Senate Banking Committee. He dismissed the comparison to the “Palace of Versailles” made by Sen. Tim Scott (R-SC) and labeled the report as “misleading and inaccurate.”
Despite Powell’s denial, the project’s planning documents, approved by government officials in 2021, contradict his statements. The documents mention private dining rooms, marble, water features, and vegetated roof terraces, all of which Powell claimed would not be included.
Andrew T. Levin, a former Fed official and current economics professor at Dartmouth College, called for Congress to take action against Powell for providing false information under oath. Levin emphasized the importance of correcting such statements and potentially censuring Powell for his actions.
Senator Cynthia Lummis (R-WY) criticized Powell for his inaccuracies during the Senate Banking Committee hearing, stating that he seemed unprepared and should be embarrassed by his misleading statements regarding the renovation project.
The escalating costs of the renovation, which have already exceeded the initial estimate by 30%, have raised concerns about taxpayer subsidies. Despite these concerns, Powell downplayed the cost overruns during the hearing and defended the project’s expenses.
Amidst the controversy surrounding the Fed’s spending, the institution has faced significant financial losses in recent years. Powell’s decision to raise interest rates in response to rising inflation contributed to the Fed’s historic losses, leading to questions about the organization’s financial stability and operational capacity.
The revelations about the lavish headquarters renovation come at a time when the Fed is grappling with financial challenges, including mounting losses and the need to pay down deferred assets before allocating funds to other government priorities.
