Jul 2, 2025 - Economy

Trump official demands Congress probe Powell over Federal Reserve renovations

Courtenay Brown

Fed chair Jerome Powell testifying in front of the U.S. Senate in June 2025. — Fed chair Jerome Powell in Senate testimony in June. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

The director of the Federal Housing Finance Agency on Wednesday called on Congress to investigate and potentially remove Federal Reserve chair Jerome Powell over his testimony about renovations to the Fed's headquarters.

Why it matters: It is an unusual— and rare — move for a top administration official, one that shows how far the White House is willing to go to pressure the central bank leader, who has resisted relentless demands to cut rates.

The administration wants to be rid of Powell, with President Trump saying last week he plans to appoint a Fed chair who will do as he wants on rate policy.

Catch up quick: FHFA director Bill Pulte posted to X that he was calling on Congress to probe Powell, saying the Fed chief's recent testimony about renovations was "enough to be removed 'for cause.'"

Pulte has been part of the administration chorus demanding that Powell substantially lower rates.

State of play: Powell, at a congressional appearance last week, pushed back on media reports that suggested lavish renovations for Fed offices, including its dining facilities.

"All the sort of inflammatory things that the media characterized are either not in the current (renovation) plan, or just inaccurate — but not withstanding that the cost overruns are what they are," Powell told the Senate last week.

Add Axios on Google

Trump official demands Congress probe Powell over Federal Reserve renovations

What to read next