Congressional officials are criticizing Federal Reserve Chairman Jerome Powell for potential deception regarding the $2.5 billion renovation of the Fed's headquarters.
In the midst of economic uncertainty and high interest rates, the Federal Reserve Chair, Jerome Powell, is facing intense criticism for allegedly misleading Congress about the $2.5 billion renovation of the Fed's Washington, D.C. headquarters.
During a Senate Banking Committee hearing, Powell denied the existence of luxury features such as private dining rooms, rooftop gardens, new marble finishes, special elevators, water features, beehives, and roof terrace gardens. However, official planning documents filed with the National Capital Planning Commission in 2021 contradict Powell’s testimony.
These filings detail "vegetated roof terraces," restoration of "private dining rooms" on the fourth floor, "new marble" finishes, and an extension of the governors’ private elevator to the executive dining suite. This discrepancy has led critics, including lawmakers and former Fed officials, to accuse Powell of lying under oath.
The controversy has sparked widespread outrage, especially as the renovation budget ballooned from an initial $1.9 billion to $2.5 billion and takes place during a period of economic strain for many Americans facing inflation and rising costs. Critics argue that spending public money on lavish upgrades at a central bank sends the wrong message in the current economic climate.
Andrew T. Levin, a Dartmouth economics professor and former Fed advisor, has urged Congress to punish Powell for making false statements, calling for censure if necessary. The optics of luxury spending at a taxpayer-backed institution like the Federal Reserve are proving hard to defend.
As a result, the Fed is no longer transferring profits to the U.S. Treasury, impacting public budgets for defense, education, and healthcare. The Fed reported a loss of $114.6 billion for 2023, bringing its total losses over the past three years to $233 billion.
The controversy over the Federal Reserve's renovation project has become a political flashpoint, with Powell facing pressure from multiple sides. Watchdogs are warning of a breach of public trust regarding the Federal Reserve's spending, and lawmakers are demanding transparency.
Meanwhile, former President Donald Trump is urging Powell to cut interest rates amid a turbulent economy. Sen. Tim Scott (R-SC) compared the project to the opulence of the "Palace of Versailles," criticizing it as a misuse of federal funds during a time of economic uncertainty.
The Federal Reserve did not respond to requests for comment on this matter.
[1] "Fed Chair Powell Denies Existence of Luxury Features in Federal Reserve Renovation" - CNBC, [link] [2] "Critics Slam Jerome Powell for Misleading Congress on Federal Reserve Renovation" - The Hill, [link] [3] "Former Fed Advisor Calls for Censure of Jerome Powell for False Testimony" - The Washington Post, [link] [4] "Official Planning Documents Contradict Powell's Testimony on Federal Reserve Renovation" - Politico, [link]
- Despite high interest rates and economic uncertainty, the Federal Reserve's $2.5 billion renovation project has faced criticism, with Federal Reserve Chair Jerome Powell accused of misleading Congress about luxury features.
- The controversy over luxury features such as private dining rooms, rooftop gardens, and new marble finishes has sparked widespread outrage, especially as many Americans are grappling with inflation and rising costs.
- Critics argue that spending public money on lavish renovations at the Federal Reserve sends the wrong message in the current economic climate, and some, like Dartmouth economics professor Andrew T. Levin, are urging Congress to punish Powell for his false statements.
- The Federeral Reserve's current spending has also impacted public budgets, with the Fed reporting a loss of $114.6 billion for 2023 and a total loss of $233 billion over the past three years.
- The renovation controversy has become a political flashpoint, with Powell facing pressure from multiple sides, including lawmakers, watchdogs, and former President Donald Trump, who has urged him to cut interest rates amid a turbulent economy.
- The situation has led to calls for transparency, with lawmakers demanding an explanation for the discrepancies between Powell's testimony and the official planning documents.
- As the controversy continues, the Federal Reserve has yet to respond to requests for comment on this matter, with important questions about policy-and-legislation, politics, and general-news remaining unanswered in the realm of banking, finance, crime-and-justice, war-and-conflicts, business, and the economy.
