Calls Grow for Congress to Investigate Federal Reserve Chair Over $2.5 Billion Controversy

Fed Chair Jerome Powell Faces Pressure Over $2.5 Billion Scandal

Federal Reserve Chairman Jerome Powell is under serious pressure as calls grow for Congress to investigate a failed $2.5 billion project. Many are accusing him of mismanaging funds and misleading lawmakers.

On July 2, William J. Pulte — who leads the U.S. Federal Housing Finance Agency and also oversees Fannie Mae and Freddie Mac — urged Congress to open an investigation into Powell. Pulte claims Powell gave false information during a Senate hearing and mishandled the expensive renovation of Federal Reserve buildings.

Pulte posted on social media that Powell showed political bias and lied to Congress. He said, “Powell’s $2.5 billion building renovation scandal stinks” and insisted that this behavior is enough to remove him from his position.

The renovation reportedly included luxury features like a private dining room, rooftop terrace, fancy elevators, and water fountains. This spending has drawn criticism from Senator Cynthia Lummis, who said Powell gave “factually inaccurate” details about the project and showed a “don’t bother me” attitude.

While some believe this is a serious case of misuse of public funds, others argue that fixing up buildings isn’t wrong by itself. They also worry that targeting Powell could harm the Federal Reserve’s independence, especially during important economic times.