Fed Chair Jerome Powell Accused of Lying to Congress Over $2.5B ‘Palace of Versailles’ HQ Revamp [WATCH]

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.”

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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.

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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.”

Image Credit: NCPC

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.”

JUST IN: 🇺🇸 President Trump calls for Fed Chair Jerome Powell to resign. I’d love for him to resign… He’s done a lousy job. pic.twitter.com/wmsmFJuRBs

— Austin Zaback (@AustinZaback) June 28, 2025

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.”

Image Credit: NCPC

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.

Business titan Elon Musk, who once headed the now-defunct Department of Government Efficiency (DOGE), chimed in after the Post broke the story earlier this year.

Calling the spending “an eyebrow raiser,” Musk argued that DOGE should “definitely” investigate the spiraling costs and lack of oversight.

The Fed’s renovation splurge is drawing heightened scrutiny due to the institution’s current financial woes.

Over the past three years, the Fed has racked up $233 billion in losses — largely the result of surging interest costs outpacing earnings from its bond holdings.

In 2023 alone, the Fed posted a historic loss of $114.6 billion.

These losses are accounted for in the form of a “deferred asset,” meaning the Fed must recover these funds before transferring profits back to the U.S. Treasury.

.@BernieMoreno: “One man—Jerome Powell—is costing this country $400 billion a year. Homeowners, businesses, credit card holders, all suffer because he has a personal beef with the president. I’ve advocated for his immediate removal. He’s a partisan. This guy needs to go.” pic.twitter.com/lnhDhel5QJ

— Laura Ingraham (@IngrahamAngle) June 27, 2025

Until then, these losses effectively prevent the government from using Fed surplus revenues for key public expenditures such as defense, education, and healthcare.

The scale of the renovation becomes even more controversial when compared to the private sector.

JPMorgan Chase’s new 60-story global headquarters in Manhattan, designed by renowned architect Norman Foster, is expected to cost just $3 billion — only marginally more than the Fed’s comparatively modest D.C. complex.

With mounting losses, budget overruns, and now accusations of false testimony under oath, Powell’s leadership at the Federal Reserve is facing unprecedented scrutiny.

Jerome Powell needs to be arrested for not cutting interest rates. pic.twitter.com/oVxQY7ufWV

— George (@BehizyTweets) June 28, 2025

Lawmakers from both chambers may now consider whether censure or further investigation is warranted.

The controversy surrounding the Eccles Building upgrade is not just a matter of marble and roof gardens — it’s a referendum on how public institutions handle transparency, accountability, and taxpayer trust.