Pulte’s allegations revolve around the planned modernization project of the Fed’s nearly century-old headquarters. Powell had stated that the building would not include “VIP dining rooms, new marble, private elevators, or rooftop gardens.” However, documents submitted to the National Capital Planning Commission clearly show “landscaped and occupiable rooftop terraces” as part of the plan. 

Tension Rises Between Renovation Project and Interest Rate Policy Criticism 

The contradictions in Powell’s statements are not limited to architectural details. FHFA Director Pulte emphasizes that the Fed’s interest rate policies have severely damaged the housing market. 

In a statement shared on X , Pulte said: 

“This is nothing but abuse of power and warrants removal ‘for cause.’ Federal Reserve Chair Powell must be immediately investigated by Congress. You have cost the U.S. a fortune. And you continue to do so.” 

Pulte stated that the Fed’s renovation project created an image of an out-of-touch and luxury-focused institution. He stressed that this approach undermines public trust. “This is nothing but negligence of duty and should be considered ‘for cause’ grounds for Powell’s removal,” he said. He also mentioned that the Fed was “too late” in lowering interest rates. Furthermore, he said these statements alone justify Powell’s removal “for cause.” 

U.S. Federal Housing and the Fannie Mae and Freddie Mac Chairman Calls on Congress to Investigate Jerome Powell pic.twitter.com/E6P9MobJOa

— Pulte (@pulte) July 2, 2025

Senate Banking Committee Chair Tim Scott also asked Powell direct questions about the project. Meanwhile, Powell denies media comparisons to the “Palace of Versailles,” arguing there are no extravagant elements in the project. However, since the planning documents contradict Powell’s statements, lawmakers are expected to evaluate these conflicting claims. 

Pressure on the Fed’s Independence Increases 

Pulte’s statements are viewed as part of the Trump administration’s systematic pressure campaign against Fed Chair Powell. Meanwhile, President Trump has also expressed his desire to replace Powell with another candidate. 

How Congress responds to FHFA’s request in the coming days will affect not only Powell’s future but also the Fed’s independence. 

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