Fed Reserves Chief Jay Powell must have gone crazy, spending 2.5 billion dollars to renovate the Federal Reserves building! Let’s get rid of him. Go Bill Pulte, get Powell!

So, there are two stories. First is why the renovations are so expensive. Second one is who is Bill Pulte and why does he want to go after Jay Powell.

“Donald Trump’s allies are attacking Fed Chair Jerome Powell over the expensive project. That’s the price he’s paying for building in a swamp.” The Federal Reserves building was built in 1937 and you can’t exactly move it or build it somewhere else.

Foundation work for the Fed expansion was so difficult that contractors responsible for the job received a 2025 award for “excellence in the face of adversity” from the Washington Building Congress, a building trades association.

Bloomberg link: Why the Federal Reserve’s Building Renovation Costs $2.5 Billion

From the above link, the article states:

Any evidence of mismanagement or fraud, as White House officials have suggested, could prove a useful pretext for removing Fed Chair Jerome Powell, whose resistance to cutting interest rates this year has angered the president.

But the price tag has less to do with “ostentatious” features than the challenges of building — particularly underground — in what was once a swamp near the Tidal Basin along the Potomac River.

Bill Pulte is Director of the Federal Housing Finance Agency. His grandfather, William Pulte, the founder of Pulte Homes, past away in 2018. His appointment was approved by the Senate along party lines. He immediately began gutting the agency, primarily the employees enforcing the Fair Housing Act, which prohibits discrimination in the sale and rental of property. Wikipedia states, “Pulte’s job cuts targeted a department that oversaw fair housing rules for the Federal Home Loan Bank system.”

Prior to the Fair Housing Act, real estate agents routinely kept blacks out of buying homes in white neighborhoods.

Wikipedia Link: Bill Pulte

I don’t know if Bill Pulte knows anything about the Federal Reserves renovation in the short time he has been Director of FHFA. Obviously, he knows Trump wants to get rid of Powell, and is willing to make accusations of misconduct to help Trump fire Powell for cause. The Washington Post has reported that Pulte wrote a draft letter, claiming mismanagement of the renovations, just in case Trump decides to fire Powell for cause. It’s really just pre-text as Trump wants to be end the independence of the Federal Reserve Board and future interest decisions.

Pulte will be very busy with Trump’s attempt to privatize the Fannie Mae and Freddy Mac loan agencies. It is a highly contentious and political issue. I felt USA Today gave a balanced review of privatization of these agencies.

USA Today: Fannie Mae and Freddie Mac privatization: What it means for homebuyers

According to USA Today, “Privatization may also come with tighter lending standards, making it more difficult for those with modest incomes and limited credit histories to secure loans.”

Also per Wikipedia:

In April, Pulte referred Letitia James, the attorney general of New York, to attorney general Pam Bondi and deputy attorney general Todd Blanche for criminal prosecution, alleging that James “falsified bank documents and property records to acquire government backed assistance and loans and more favorable loan terms.” The following month, The Washington Post reported that the Department of Justice was investigating James.

Todd Blanche represented Trump in the Stormy Daniels hush money trial. He was found guilty of 34 felony counts. Trump was let off easy by the judge as he did not have to pay a fine, be on probation or jail time. The latter would have been difficult since sentencing occurred after he was re-elected. The case is still under appeal.

If Trump fires Jerome Powell on a pile of false accusations, the Democrats will be making the case that the Fed independence is dead.

Stay tuned,

Dave