The explosive revelation
U.S. President Donald Trump has publicly demanded the immediate resignation—or forced removal—of Federal Reserve Chairman Jerome Powell, accusing him of perjury before Congress. The controversy centers on a secret renovation project of the Fed’s headquarters, with an estimated cost of $2.5 billion, funded by taxpayers and falsely presented as a routine infrastructure upgrade.

The origin of the accusations
The allegations were spearheaded by Bill Pulte, director of the Federal Housing Finance Agency (FHFA), who claimed that Powell misled Congress by downplaying the scale and luxury of the project. Leaked blueprints reveal rooftop gardens, private elevators, and executive dining halls clad in marble. Pulte submitted documents contradicting Powell’s Senate testimony, prompting Trump to label the case as an “institutional betrayal.”

Luxury unveils a culture of secrecy
Initially justified as a modernization for security and structural concerns, the project has now become a symbol of excess. Imported beehives, private suites, and opulent design features have drawn harsh criticism from lawmakers and public figures. While inflation and unemployment affected millions of Americans, the central bank was quietly executing a redesign likened to a “modern Versailles.”

The Fed under political fire
Several Republican lawmakers, including Senator Cynthia Lummis and Senator Tim Scott, have demanded answers. Congress is considering a formal investigation. However, Powell’s removal would legally require cause, and could be complicated by previous Supreme Court rulings protecting the Fed’s independence.

What comes next?
Trump has stated that if Powell does not resign, he could face federal charges for perjury. The scandal has opened a new political front in Washington, reigniting debates about the Fed’s role, lack of accountability, and perceived alignment with financial elites. Calls for stronger congressional oversight of the Federal Reserve continue to intensify.

Sources:
https://www.barrons.com/articles/fed-powell-pulte-congress-investigate-b6785666
https://www.politico.com/news/2025/07/02/trump-housing-regulator-powell-fed-congress-investigate-00437374
https://nypost.com/2025/07/02/us-news/top-white-house-official-urges-probe-of-feds-jerome-powell-over-deceptive-testimony-on-palace-of-versailles-2-5b-hq-revamp
https://www.marketwatch.com/story/powell-should-be-investigated-by-congress-over-deceptive-testimony-trump-official-says-14426d99