- Powell faces perjury allegations tied to undisclosed luxury upgrades at Fed HQ
- GOP pressure mounts on Powell amid conflict over rates and renovation disclosures
- Fed launches transparency steps as Luna urges DOJ probe into Powell’s testimony
Federal Reserve Chair Jerome Powell is now facing a formal criminal referral filed by Rep. Anna Paulina Luna, a Florida Republican and ally of President Trump. The referral, sent to the Department of Justice, accuses Powell of lying under oath to Congress on two separate occasions.
This move marks a significant escalation in the political pressure from conservatives who are demanding Powell’s removal before his term ends in 2026. Although originally a Trump appointee, Powell is now viewed by many within the president’s circle as a political obstacle on monetary policy.
Referral alleges Powell misled Congress
Luna’s criminal referral centers on Powell’s testimony regarding the ongoing renovation of the Federal Reserve’s Eccles Building. According to a Fox News report, Powell claimed during his statements that the project involved only basic updates without extravagant features.
However, documents submitted to the National Capital Planning Commission reportedly contradict his testimony. These documents are said to describe high-end upgrades, including private VIP dining areas, luxury marble finishes, and rooftop gardens.
Related: US Lawmaker Claims Jerome Powell Will Be Sacked: The Search for a New Fed Chair Is On
Luna alleges that Powell misled both Congress and the public by downplaying the scope and cost of the renovations. Her referral argues that these discrepancies could amount to perjury, which carries a penalty of fines and up to five years in prison.
A broader political fight over the Fed’s future
Beyond the specific allegations, Powell is also facing renewed political attacks from Trump-aligned conservatives over his interest rate decisions. Critics in the party have argued that Powell did not align with Trump’s calls for more aggressive rate cuts.
Luna has publicly stated her belief that Trump will eventually remove Powell from his role. However, the president himself recently remarked that firing the Fed Chair remains “highly unlikely” for now, while some moderate Republicans have warned that such a move could destabilize financial markets.
Powell responds with a push for transparency
In response to the allegations about the renovation, Powell has requested a formal review of the project’s expenses by an independent watchdog.
Related: Fed’s Powell Signals ‘Meaningful Progress’ on US Stablecoin Bill
The Federal Reserve has also posted a detailed video tour of the renovation project on its website in a move that appears aimed at countering claims of misrepresentation and reinforcing public trust.
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