Top White House official urges probe of Fed's Jerome Powell over deceptive' testimony on 'Palace of Versailles' $2.5B HQ revamp
Federal Housing Finance Agency Director William Pulte, who is also chairman of the two US-backed mortgage lenders Fannie Mae and Freddie Mac, demanded that Powell be probed by lawmakers and suggested he could even be fired by President Trump.
4 FHDA director Bill Pulte, left, has called on Congress to investigate Jerome Powell, right, for his 'deceptive' testimony to the Senate Banking Committee last week over the 'Palace of Versailles' $2.5B revamp.
Advertisement
'I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed 'for cause', Pulte said in a leaked statement obtained by The Post.
'Jerome Powell's $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress. This is nothing short of malfeasance,' the 37-year-old former journalist and private equity titan added.
Powell has already been heavily criticized by President Trump this week, who took the unusual step of sending him a handwritten note urging him to cut interest rates.
Advertisement
Pulte's call for the Congressional probe comes one week after the Fed chair's appearance before the Senate Banking Committee in which he denied The Post's exclusive reporting about the renovations that have been likened by Sen. Tim Scott (R-SC) to the 'Palace of Versailles.'
'There's no VIP dining room, there's no new marble. There are no special elevators,' Powell insisted under questioning from the powerful panel on Wednesday. 'There are no new water features, there's no beehives, and there's no roof terrace gardens,' Powell said during the grilling by lawmakers.
4 The Post's artwork from its story on Monday which broke the news about how lawmakers were concerend that he may have lied to Congress.
Jack Forbes / Donald Pearsall / NY Post Design
The 72-year-old's testimony sparked outrage because they directly contradicted the Fed's own planning documents that were signed off by US government pen pushers in 2021 and have not been revised since.
Advertisement
'The private dining rooms on Level 4 (of the Fed's Eccles building) will be restored,' reads one excerpt from the filing with the National Capital Planning Commission. 'The Governors' private elevator will be extended to discharge at the dining suite level.'
The documents also expressly mention 'vegetated roof terraces' that will welcome 'urban wildlife and pollinators' as well as new marble and water features.
A Post editorial published on Tuesday hit out at Powell over 'his privileged arrogance' in the way he spoke to the committee.
4 The Fed's own filings with the National Capital Planning Commission tell a very different story from the one recounted by Jerome Powell to the Senate Banking Committee.
NCPC
Advertisement
He also appeared to dismiss concerns that the revamp was being subsidized by American taxpayers in Wednesday's hearing, saying simply that 'the cost overruns are what they are.'
The eye-watering price tag for the overhaul has already ballooned by 30% from an original estimate of $1.9 billion.
After The Post broke the story in April about the Fed's reckless spending on the HQ upgrade, former Department of Government Efficiency chief Elon Musk called the news 'an eyebrow raiser.'
The Tesla titan, who has since left government, said DOGE should 'definitely' investigate how so much money came to be blown on the glorified vanity project.
By comparison, JPMorgan's new headquarters in Midtown Manhattan — a luxe, 60-story tower at 270 Park Ave. designed by star architect Norman Foster — is set to cost an estimated $3 billion.
4 Sen. Tim Scott (R-SC) said the renovations with their lavish amenities look like they belong in the 'Palace of Versailles', the official residence of the long deposed French monarchy.
AP
The revelations are controversial at a time when the Fed is struggling with mounting losses, which stand at a total of $233 billion from the past three years.
Its interest costs surged and outstripped its earnings on bonds it owns when Powell hiked rates in trying to tame rampant inflation during the Biden administration.
Advertisement
It sank into the red for the first time in its history, posting losses of $114.6 billion in 2023. Officials there insist that losing money in no way impacts their ability to operate and conduct monetary policy.
When the Fed makes a profit, that money is passed on to the US Treasury to become part of the federal government's budget.
The losses are bundled together in what is known as the Fed's 'deferred asset' that it must pay down before money can be spent on other things, such as defense, education and Medicare.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
2 hours ago
- New York Post
Manhattan Democratic Party endorses nominee Zohran Mamdani for mayor
The leadership of the Manhattan Democratic Party overwhelmingly endorsed socialist Zohran Mamdani for mayor after he appeared before the executive members at a meeting Monday night. Party leader and Harlemite Keith Wright, who backed ex-Gov. Andrew Cuomo in the Democratic primary, voted 'aye.' The unofficial vote of the party executive committee was 49 in favor and 5 against. 4 The unofficial vote of the party executive committee was 49 in favor and 5 against. Derek French/Shutterstock 'Zohran won the Democratic primary. He ran the most impressive campaign I've seen in 40 years of politics,' Wright, a former Harlem state assemblyman, told The Post after the meeting. Mamdani is expanding his support as the Democratic nominee as two of his opponents, incumbent Mayor Eric Adams and Cuomo are running on independent ballot lines. Lawyer Jim Walden is also running as an independent while Guardian Angels founder Curtis Sliwa is the Republican nominee for mayor. Many committee members said they were impressed how Mamdani turned out voters in the primary, particularly young Democrats. 'The Democratic party was adrift. Our party hasn't seen life like we saw on June 24 [the date of the Democratic Party primary] in a long time,' said Greenwich Village district leader Arthur Schwartz. 'Zohran is bringing life back into the party.' 4 A few members complained that Mamdani was changing the party and bringing socialism into it. Manhattan Democratic Party The vote was overwhelming for Mamdani, but not unanimous. A few members complained that Mamdani was changing the party and bringing socialism into it. 'I'm a Democrat. I'm not a socialist Democrat,' said former Harlem state Assemblywoman Inez Dickens, adding that Mamdani had not presented an 'agenda' for black residents. 4 Many committee members said they were impressed how Mamdani turned out voters in the primary, particularly young Democrats. Paul Martinka for NY Post 4 Party leader and Harlemite Keith Wright, who backed ex-Gov. Andrew Cuomo in the Democratic primary, voted 'aye.' AP Others were concerned about his anti-Israel stance amid a rise in antisemitism. Mamdani, who fielded questions before the vote, told Democrats that he would fight antisemitism. He also said he would not cut staffing at the NYPD.
New York Post
3 hours ago
- New York Post
Mamdani stokes Italian American outrage after resurfaced tweet shows socialist giving the finger to Christopher Columbus statue: ‘Take it down'
He's no paesan. Italian Americans were outraged at mayoral frontrunner Zohran Mamdani Monday after a social media post resurfaced showing him flipping the bird at a statue of Christopher Columbus and calling for its removal. The socialist Mamdani is seen in the tweet from June 2020 giving the middle finger to the back of the towering figure in Astoria, which is part of his state Assembly district. Advertisement 5 Italian Americans were outraged at mayoral frontrunner Zohran Mamdani Monday after a social media post resurfaced. Stephen Yang 'Take it down,' wrote Mamdani, who was running for state office at the time. The tweet left a bad taste in the mouth of Italian American groups in the Big Apple this week, including the Columbus Heritage Coalition. Advertisement Angelo Vivolo, the group's president, vowed not to support the lefty candidate come November. 5 The socialist Mamdani is seen in the tweet from June 2020 giving the middle finger to the back of the towering figure in Astoria. Zohran Mamdani/X 'We will defend Columbus Day and Columbus statues,' he told The Post. 'He is being disrespectful to the Italian American community' said Vivolo, who is the former head of the Columbus Citizens Foundation, which runs the city's Columbus Day Parade. 'If you offend one community, you offend all communities. Advertisement 'I don't think he will be mayor for all the people of New York City.' 5 'Take it down,' wrote Mamdani, who was running for state office at the time. Matthew McDermott The Italian voting bloc that Mamdani disrespected makes up about 8% of the city's population, noted Joseph Scelsa, the founder and president of the Italian American Museum. 'To eliminate such a large population of people would be a travesty,' he said. 'It's not inclusive. It's exclusionary. Advertisement 'Who's to say who is a hero and who is not a hero? Columbus is our hero.' 5 The tweet left a bad taste in the mouth of Italian American groups in the Big Apple this week, including the Columbus Heritage Coalition. Robert Miller An email to Mamdani's campaign about the brewing controversy was not immediately returned. The wet behind the ears socialist shocked ex-Gov. Andrew Cuomo in June's Democratic primary, putting him in the driver's seat for November. Mamdani could face Cuomo again in the general election — the longtime Italian American pol is mulling a run as an independent — along with Mayor Eric Adams, who is running as an independent, and GOP candidate Curtis Sliwa. 5 An email to Mamdani's campaign about the brewing controversy was not immediately returned. Matthew McDermott Lefties have made a habit of targeting Columbus statues and Columbus Day because of the famed explorer's treatment of Native Americans when sailing to North America. Advertisement But supporters argue he's important to Italian Americans and his voyage was a critical moment in history. The statue Mamdani condemned in his tweet is one of the five in Big Apple parks, according to city officials.
Yahoo
3 hours ago
- Yahoo
EU Rushes to Conclude Framework Trade Deal With US This Week
(Bloomberg) -- The European Union is seeking to conclude a preliminary trade deal with the US this week that would allow it to lock in a 10% tariff rate beyond an Aug. 1 deadline as they negotiate a permanent agreement. Are Tourists Ruining Europe? How Locals Are Pushing Back Foreign Buyers Swoop on Cape Town Homes, Pricing Out Locals Trump's Gilded Design Style May Be Gaudy. But Don't Call it 'Rococo.' Denver City Hall Takes a Page From NASA In California, Pro-Housing 'Abundance' Fans Rewrite an Environmental Landmark The EU is seeking an exemption from the 10% rate for certain key products including aircraft, aircraft parts as well as wine and spirits, according to people familiar with the matter. Some form of relief is expected as part of the agreement in principle. The euro edged up as much as 0.3% in early Asia trading Tuesday as traders reacted to a Politico report that said the US offered a deal that would keep the 10% baseline tariffs with exemptions for sensitive sectors like aircraft and spirits. Investors view the 10% as a more palatable level for trade duties compared with other counterparts, providing a boost to Europe's common currency. The European Commission, which handles trade matters for the EU, briefed member states Monday on the status of the negotiations. A spokesperson from the commission declined to comment on the ongoing talks. 'Europe is the one that's really getting close to a good deal,' said Billy Leung, Sydney-based investment strategist at Global X ETFs, adding that the EU appears to be in a better situation than US trading partners such as Japan and South Korea. The US announced on Monday that universal tariffs that were due to kick in July 9 would be delayed until at least the beginning of August. For the EU, tariffs on nearly all its exports to the US will jump to 50% on that date if it doesn't strike a deal beforehand. Trump has imposed tariffs on almost all US trading partners, saying he wants to bring back domestic manufacturing, needs to pay for a tax-cut extension and stop other countries from taking advantage of the US. The EU is also pushing the US for quotas and exemptions to effectively lower Washington's 25% tariff on automobiles and car parts as well as its 50% tariff on steel and aluminum, according to the people. But a breakthrough on those levies is not immediately forthcoming. However, the two sides are discussing a so-called offsetting mechanism that would allow companies that make automobiles in the US to export a certain number tariff free, said the people. Some officials are concerned that such an arrangement could see investments and production shift across the Atlantic, Bloomberg previously reported. Any initial deal would likely be short and not legally binding. The two sides are also aiming for common ground on non-tariff barriers, digital trade and economic security. In addition to so-called reciprocal tariffs and sectoral levies on cars and metals, the US is working to introduce duties on other sectors, including pharmaceuticals and semiconductors. Member states are divided on how imbalanced a deal the bloc should accept, with some pushing for a quick agreement while others want the EU to impose countermeasures and negotiate from a position of strength. The EU will assess any end result and at that stage decide what level of asymmetry it's willing to accept and whether any rebalancing measures would be required, Bloomberg previously reported. The EU has approved tariffs on €21 billion ($24.6 billion) of US goods that can be quickly implemented in response to Trump's metals levies. They target politically sensitive US states and include products such as soybeans from Louisiana, home to House Speaker Mike Johnson, as well as agricultural products, poultry and motorcycles. The bloc has also prepared an additional list of tariffs on €95 billion of American products in response to Trump's so-called reciprocal levies and automotive duties. They would target industrial goods including Boeing Co. aircraft, US-made cars, and bourbon. The EU is also consulting member states to identify strategic areas where the US relies on the bloc, as well as potential measures that go beyond tariffs such as export controls and restrictions on procurement contracts. --With assistance from Andra Timu, Milda Seputyte and Ruth Carson. (Updates with euro move in third paragraph.) SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom For Brazil's Criminals, Coffee Beans Are the Target Sperm Freezing Is a New Hot Market for Startups Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
