Federal Reserve Chair Jerome Powell is under fire following accusations that he misled Congress about the extent and extravagance of a controversial $2.5 billion renovation of the Fed’s Washington, D.C. headquarters. Critics, including lawmakers and former Federal Reserve insiders, are now demanding accountability after Powell’s sworn testimony appeared to contradict government planning documents.
During a Senate Banking Committee hearing last week, Powell was grilled over The Post’s April exposé, which revealed a bloated renovation project some have compared to the “Palace of Versailles.” Under intense questioning, Powell rejected the portrayal as “misleading and inaccurate.” “There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell testified. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
However, planning documents submitted to the National Capital Planning Commission in 2021 — and not revised since — appear to directly refute Powell’s claims. One excerpt notes, “The private dining rooms on Level 4 (of the Fed’s Eccles building) will be restored,” while another confirms, “The Governors’ private elevator will be extended to discharge at the dining suite level.” Additional plans specify “vegetated roof terraces” designed to attract “urban wildlife and pollinators,” along with mentions of new marble installations and water features.
Andrew T. Levin, a Dartmouth economics professor who served at the Fed for two decades, didn’t mince words about Powell’s testimony. “A top Fed official cannot be permitted to make false statements under oath at a congressional hearing,” Levin stated. “Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate.”
Republican lawmakers echoed those sentiments. Sen. Cynthia Lummis (R-Wyo.), a member of the Senate Banking Committee, slammed Powell for being “clearly not prepared for his testimony, and should be embarrassed.”
“He made a number of factually inaccurate statements to the Committee regarding the Fed’s plush private dining room and elevator, skylights, water features, and roof terrace,” Lummis told The Post. “This is typical of the mismanagement and ‘don’t bother me’ attitude that Chair Powell has always shown.”
The Federal Reserve has declined to comment on the controversy, further fueling criticism over transparency and accountability. Adding to the firestorm is the skyrocketing cost of the Fed’s headquarters overhaul, which has jumped 30% from its original $1.9 billion estimate to a staggering $2.5 billion. Powell appeared to brush off concerns about fiscal discipline during his testimony, stating simply, “The cost overruns are what they are.”
Sen. Tim Scott (R-SC), chair of the Senate Banking Committee, criticized the project as “luxury upgrades that feel more like they belong in the Palace of Versailles,” signaling growing impatience among lawmakers over what they perceive as government excess.
The Fed’s renovation splurge is drawing heightened scrutiny due to the institution’s current financial woes.
