ederal Reserve Chair Jerome Powell is reportedly under fire after denying that a $2.5 billion overhaul of the Fed’s Washington headquarters includes lavish upgrades—claims that appear to be contradicted by the Fed’s own planning documents. Critics have accused Powell of misleading Congress, and some are calling for him to be censured.
During a Senate Banking Committee hearing last week, Powell dismissed The New York Post’s April report describing the renovation as bloated and extravagant.
“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell testified under questioning. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
Sen. Tim Scott (R-S.C.) likened the project to the “Palace of Versailles,” according to the news outlet.
Fed documents tell another story
Powell’s denials appeared to directly contradict official filings submitted to the National Capital Planning Commission in 2021 and never revised since.
According to the publication, the documents state: “The private dining rooms on Level 4 (of the Fed’s Eccles building) will be restored.”
“The Governors’ private elevator will be extended to discharge at the dining suite level.”
They also reference “vegetated roof terraces” meant to attract “urban wildlife and pollinators,” plus plans for new marble and water features.
Expert and Senators urge censure, slam Powell’s preparedness
Andrew T. Levin, a Dartmouth College economics professor who previously served as a Fed economist and advisor for two decades, said Congress should take action.
“A top Fed official cannot be permitted to make false statements under oath at a congressional hearing,” Levin told the news outlet. “Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate.”
Sen. Tim Scott (R-S.C.), who chairs the committee, likened the renovation to the “Palace of Versailles” and called it “a luxury upgrade” unfit for a government institution.
Sen. Cynthia Lummis (R-Wyo.), a member of the committee, said Powell’s testimony was inaccurate and unprepared.
“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 said in a statement to the news publication.
“This is typical of the mismanagement and ‘don’t bother me’ attitude that Chair Powell has always shown.”
Cost overruns
Originally projected to cost $1.9 billion, the renovation’s price tag has ballooned 30% to $2.5 billion.
Powell appeared to brush off concerns about taxpayer money, saying simply: “The cost overruns are what they are.”