New Developments in the Federal Reserve Renovation Saga
On Tuesday evening, Bill Pulte, the Chairman of the Board for Fannie Mae and Freddie Mac, announced that two additional criminal referrals have been issued concerning the Federal Reserve’s extravagant renovation project, which has seen costs surge from an already staggering $1.9 billion to an eye-watering $2.5 billion.
Amidst rising scrutiny, Fed Chair Jerome Powell finds himself at the center of controversy regarding the exorbitant expenses associated with the renovation of the Fed’s Washington, D.C., headquarters. During an on-site inspection, Pulte noted an alarming lack of workforce, observing only six construction workers actively engaged in what appeared to be demolition work.
In a candid conversation with Fox News host Laura Ingraham, Pulte expressed his disbelief at the situation: “I’ve been in construction my whole life… but I go to this $2.5 billion Fed building and they’re tearing down marble and steel? It doesn’t make sense. We’re going to get to the bottom of it,” he asserted, underscoring the baffling nature of the project.
“I’ve been in construction my whole life… but I go to this $2.5B Fed building and they’re tearing down marble and steel? It doesn’t make sense. We’re going to get to the bottom of it.”
— @Pulte on the bizarre rebuild of the Federal Reserve HQ. pic.twitter.com/kSM8NPOBl8— Laura Ingraham (@IngrahamAngle) July 23, 2025
Just after his appearance on the show, Pulte announced: “We issued two more criminal referrals today.” However, specifics regarding these referrals remain elusive.
We issued two more criminal referrals today.
— Pulte (@pulte) July 23, 2025
Compounding the issues, Powell has now been criminally referred to the Justice Department for potential prosecution this week. This follows a letter from Republican Congresswoman Anna Paulina Luna, in which she accuses Powell of perjury regarding statements he made during a recent Senate testimony.
“On June 25, 2025, Chairman Powell provided testimony under oath before the U.S. Senate Committee on Banking, Housing, and Urban Affairs regarding the renovation of the Federal Reserve’s Eccles Building. In his statements, he made several materially false claims,” Luna’s letter asserted, as reported by Fox News.
Rep. Luna claims that Powell misrepresented the renovation costs, describing changes that escalated the project’s budget from $1.9 billion to $2.5 billion as “minor.” However, documents reviewed by congressional investigators suggest otherwise, indicating that the scope and cost overruns were significant and unacceptable.
