The President does not seem to give a s**t about the fact that his current Attorney General lied to Congress under oath. And Gonzales did not just lie about an affair either. He lied to Congress about the Justice Department's conviction that the warrentless wiretapping program was illegal. The Justice Department was so adamant about the illegality of the wiretapping that the Attorney General at the time, Ashcroft, his staff, and the head of the FBI said they would resign if warrentless wiretapping was pursued.
No problem for the President, just put a guy, willing to break the law, in the office of Attorney General. Problem solved.
Unfortunately there is nothing that Congress can do. They cannot fire Gonzales, only the President can.