Trump ‘OK’ with probe of Jerome Powell over ‘Palace of Versailles’ HQ revamp
President Trump ramped up his war of words with Fed Chair Jerome Powell on Tuesday by backing calls for a probe into whether he lied to Congress about a $2.5 billion upgrade to the central bank’s headquarters.
“It’s OK with me. I think he’s terrible,” Trump told reporters during a cabinet meeting at the White House. “I call him ‘Too Late.’ “He’s always late. But he wasn’t late with Biden before the election, he was cutting [rates] like crazy.”
Trump, who has repeatedly slammed Powell over his unwillingness to slash interest rates, added that his nemesis “should resign immediately” if the investigation proves he misled Congress.
Trump support for a probe comes after Federal Housing Finance Agency Director William Pulte demanded a full inquiry following Powell’s testimony to the Senate Banking Committee last month, as The Post exclusively reported.
“It is going to get worse for Jerome Powell,” Pulte, who is also chairman of US-backed mortgage lenders Fannie and Freddie Mac, told The Post on Tuesday.
“I believe Powell not only lied to Congress but also is covering up for improper payments related to the $2.5 billion renovation of the Fed building.”
A Fed spokesperson declined to comment.
The eye-popping price tag for the overhaul to the Fed’s Washington, DC, office has already ballooned by 30% from an original estimate of $1.9 billion.
Powell had disputed The Post’s reporting about the extravagant revamp, calling it “misleading and inaccurate in many, many respects.”
“There’s no VIP dining room, there’s no new marble. There are no special elevators,” Powell insisted. “There are no new water features, there’s no beehives, and there’s no roof terrace gardens.”
His denial sparked outrage among Republicans because his remarks directly contradicted planning documents that had been rubber-stamped by the National Capital Planning Commission.
The documents also expressly mention “vegetated roof terraces” that will welcome “urban wildlife and pollinators” as well as new marble and water features.
Sen. Tim Scott (R-SC) branded the luxurious upgrade as something that belongs in the “Palace of Versailles.”
Powell also appeared to dismiss concerns that the revamp was effectively being subsidized by American taxpayers in the hearing, saying simply that “the cost overruns are what they are.”
The Post has lodged a FOIA request with the Federal Reserve Board to obtain a copy of its 2025 budget, which was not released in November as it has been in previous years.
Former Department of Government Efficiency chief Elon Musk called the report about the alleged reckless spending “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.
The Fed is struggling with mounting losses, which currently stand at a total of $227 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.
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.