Federal Reserve Chair Jerome Powell faces mounting accusations that he misled Congress under oath about a $2.5 billion renovation of the central bank's Washington headquarters, with lawmakers and former Fed officials calling for his censure after government documents contradicted his sworn testimony.
During a Senate Banking Committee hearing last Wednesday, Powell denied that the Fed's headquarters renovation included luxury amenities, telling senators: "There's no VIP dining room, there's no new marble. There are no special elevators. There are no new water features, there's no beehives, and there's no roof terrace gardens." However, official planning documents filed with the National Capital Planning Commission in 2021 explicitly reference these features, stating that "private dining rooms on Level 4 will be restored" and "the Governors' private elevator will be extended to discharge at the dining suite level."
The planning documents, which have not been revised since their 2021 approval, also detail "vegetated roof terraces" designed for "urban wildlife and pollinators," along with new marble and water features.12 These amenities directly contradict Powell's categorical denials made under oath, prompting accusations of perjury from Republican senators and former Fed officials.
Andrew T. Levin, a Dartmouth College economics professor who served as a Fed advisor for 20 years, called for congressional action. "A top Fed official cannot be permitted to make false statements under oath at a congressional hearing," Levin told the New York Post. "Such statements must be promptly corrected, and in egregious cases, subject to censure by the Senate."12
Senate Banking Committee Chair Tim Scott (R-SC) branded the renovations "luxury upgrades that feel more like they belong in the Palace of Versailles," while Sen. Cynthia Lummis (R-WY) said Powell "made a number of factually inaccurate statements" and "should be embarrassed."12 The renovation's cost has ballooned 30% from an original $1.9 billion estimate, which Powell dismissed by saying "the cost overruns are what they are."13
The controversy comes as the Fed operates at unprecedented losses, reporting $233 billion in red ink over the past three years, including a record $114.6 billion loss in 2023.1 The timing has drawn criticism from former Department of Government Efficiency chief Elon Musk, who called the spending "an eyebrow raiser" and suggested investigation.1
Powell's term expires in May 2026, and President Trump is already considering his replacement over disagreements on interest rate policy. The perjury accusations add another layer of pressure on the embattled Fed Chair, who now faces questions about his credibility before Congress.
