Jerome Powell accused of lying to Congress over $2.5B lavish Fed HQ renovation — calls for punishment grow
Chair Jerome Powell is under fire from lawmakers and former officials who say he misled Congress about the $2.5 billion renovation of the Fed's Washington headquarters, and now, some are calling for him to face consequences, as per a report.
Jerome Powell Denies Luxury Upgrades Under Oath
During a
Senate Banking Committee
hearing last week, Powell dismissed reports that the central bank's building revamp includes luxury amenities, as per the New York Post. He called the media coverage "misleading and inaccurate" and insisted that the renovation does not include anything extravagant, according to the report.
Powell told senators, 'There's no VIP dining room, there's no new marble. There are no special elevators,' adding, 'There are no new water features, there's no beehives, and there's no roof terrace gardens,' quoted the New York Post.
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Planning Documents Tell a Different Story
But the project's planning documents from 2021, which haven't been revised since, show contradicting details, as per the report. According to filings with the National Capital Planning Commission, the project includes 'The private dining rooms on Level 4 (of the Fed's Eccles building) will be restored,' and 'The Governors' private elevator will be extended to discharge at the dining suite level,' quoted New York Post.
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The documents also mention 'vegetated roof terraces' that will welcome 'urban wildlife and pollinators' and also new marble and water features, as per the report.
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Calls for Accountability Grow
The contradiction between Powell's testimony and what's on the official paper has sparked outrage among some lawmakers, who now say the Fed chair may have lied under oath, as per the New York Post report.
A professor of economics at Dartmouth College, who had also served as an economist and advisor to the Fed's board from 1992 to 2012, Andrew T. Levin has urged Congress to step in and punish Powell for lying to lawmakers, as reported by the New York Post.
He pointed out that, 'A top Fed official cannot be permitted to make false statements under oath at a congressional hearing. Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate,' as quoted in the report.
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A majority member of the Senate Banking Committee, Sen. Cynthia Lummis (R-Wyo.) said that Powell 'was clearly not prepared for his testimony, and should be embarrassed,' as quoted in the New York Post report.
Lummis highlighted that, '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,' adding, 'This is typical of the mismanagement and 'don't bother me' attitude that Chair Powell has always shown,' as quoted in the report.
Powell also rejected the concerns that the revamp was being subsidised by American taxpayers during the hearing, saying simply that 'the cost overruns are what they are,' quoted New York Post.
Project Costs Keep Climbing
Meanwhile, the total cost for the renovation has already increased by 30% from an original estimate of $1.9 billion, according to the report.
Chair of the Senate Banking Committee, Sen. Scott called the renovations as 'luxury upgrades that feel more like they belong in the Palace of Versailles,' as quoted in the report.
FAQs
Why is Jerome Powell being accused of lying?
Because he denied under oath that the Fed's renovation includes luxury features, but planning documents show that those features are part of the project.
What features did Powell say aren't in the renovation?
He said there's no VIP dining room, no marble, no special elevators, no water features, and no rooftop gardens, as per the New York Post report.
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