Federal Reserve Chair Jerome Powell is in hot water after denying to Congress that a staggering $2.5 billion renovation of the Fed's Washington headquarters is loaded with luxury amenities. His claims have been challenged, and many are calling for accountability.
Powell Denies Lavish Renovation Plans
In a recent Senate Banking Committee hearing, Powell dismissed allegations of extravagance, calling a report by The Post "misleading and inaccurate." He claimed there were no plans for VIP dining rooms, new marble, or special elevators. Yet, according to planning documents signed off by government officials in 2021, these features are indeed part of the renovation.
Senators React to Powell's Testimony
Senator Tim Scott (R-SC) likened the project to the "Palace of Versailles," pointing out that the Fed's spending priorities are out of touch with American taxpayers. Senator Cynthia Lummis (R-WY) stated that Powell was "clearly not prepared" for his testimony and made several factually inaccurate statements. The repeated mismanagement displayed by Powell raises serious questions about the Fed's accountability.
Federal Reserve Building, Washington, D.C. | Library of Congress
Calls for Accountability Grow
Andrew T. Levin, a former Fed economist, has urged Congress to take action against Powell for what he believes are lies made under oath. Levin stated, "A top Fed official cannot be permitted to make false statements under oath at a congressional hearing." This sentiment is echoed by many who believe that such behavior should not be tolerated.
Taxpayer Concerns and Rising Costs
While the Fed struggles with significant losses—totaling $233 billion over the past three years—Powell's dismissive attitude towards taxpayer concerns is alarming. The eye-popping renovation costs have already increased by 30% from the original estimate of $1.9 billion. This expenditure comes at a time when the Fed is facing its first-ever historical losses, posting a staggering $114.6 billion deficit in 2023.
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Implications for Federal Reserve Policy
The Fed is meant to operate independently and with fiscal prudence, yet the current situation illustrates a severe disconnect between the institution's spending habits and its financial responsibilities. As the Fed's losses continue to mount, Powell's lavish renovation plans raise questions about the priorities of those in charge. With American taxpayers footing the bill, transparency and accountability must be demanded from Federal Reserve leadership.
