Trump’s Housing Chief Urges Congress to Investigate Powell Over Fed Renovation Claims

The conflict between Federal Housing Finance Agency (FHFA) Director Bill Pulte and Federal Reserve Chair Jerome Powell escalated Wednesday when Pulte called on Congress to investigate Powell, accusing him of lying about costly renovations at the Fed’s headquarters.Pulte alleged that Powell misled lawmakers during recent Senate testimony by downplaying the extent of planned upgrades. “This is nothing short of malfeasance and is worthy of ‘for cause’ removal,” Pulte said in a statement posted on social media, demanding immediate congressional action to investigate the Fed chief’s “political bias.”Pulte’s criticism mirrors that of President Donald Trump, who has repeatedly attacked Powell for keeping borrowing costs high, blaming the Fed’s tight monetary policy for harming the housing market and the broader economy. Earlier this week, Trump sent Powell a handwritten note accusing him of costing the U.S. “a fortune” and urging significant rate cuts.The controversy over the Fed’s headquarters renovations began after a New York Post report likened the project to the opulence of the Palace of Versailles. During Senate questioning, Powell denied any excessive spending, insisting, “There’s no VIP dining room, no new marble, no special elevators, no new water features, no beehives, and no roof terrace gardens.”However, documents submitted to the National Capital Planning Commission indicate plans for two pairs of vegetated roof terraces, including some occupiable spaces totaling up to 735 square feet per terrace — contradicting Powell’s blanket denial of rooftop features.While the Fed declined to comment on the dispute, Pulte’s attacks are unusual for a federal regulator targeting another, especially since both men sit on the Financial Stability Oversight Council.Despite rising pressure, Powell has kept interest rates unchanged, citing uncertainties around the economic impact of the administration’s trade policies. Speaking in Portugal Tuesday, Powell left the door open for possible rate cuts later this year but emphasized that decisions would depend on economic data.