Federal Reserve Chair Jerome Powell has been formally referred to the US Department of Justice (DOJ) by Republican Congresswoman Anna Paulina Luna for alleged perjury. In a letter sent to the DOJ, Luna accuses Powell of making false statements under oath on two separate occasions, both concerning the ongoing and controversial $2.5 billion renovation of the Federal Reserve’s historic Eccles Building in Washington, DC.
The referral comes just days before a planned visit by members of the Trump administration to the Fed’s headquarters to inspect the renovations, a project that has drawn intense scrutiny from conservative lawmakers and Trump allies.
What are the allegations against Powell?
Luna’s charges are centered on Powell’s testimony before the Senate Committee on Banking, Housing, and Urban Affairs on 25 June 2025. She alleges that Powell made “materially false claims” about the state of the Eccles Building and misrepresented the nature of the renovations underway.
In particular, Luna claims Powell denied the existence of high-end upgrades such as a VIP dining room, luxury marble finishes, modernised lifts, water features, and a rooftop garden. “While Powell presented the changes as simplifications, the actual project plans suggest the opposite,” she wrote.
The Florida congresswoman further accused Powell of misleading OMB Director Russell Vought in a separate letter, in which Powell described the rise in costs from $1.9 billion to $2.5 billion as minor. “That characterisation is plainly contradicted by internal documents and NCPC submissions,” Luna added.
Political fallout
Perjury, if proven, is a serious offence in the United States, punishable by up to five years in prison and monetary fines. Luna’s move, although politically charged, adds legal weight to Republican efforts to increase scrutiny over the Fed’s activities, especially under Powell’s leadership.
The Federal Reserve has denied any wrongdoing. Trade publication Mortgage Professional reported that Powell has directed a formal internal investigation into the project’s cost escalation. A video tour and explanatory notes regarding the renovation have also been uploaded to the Fed’s website in what many see as a bid for greater transparency.
The episode deepens the divide within the Republican Party over how to deal with Powell. Luna has openly said she believes President Donald Trump should fire the Fed Chair before his term ends in 2026. Trump, who has publicly criticised Powell for not slashing interest rates, has so far held back, telling reporters it was “highly unlikely” he would remove him prematurely.
However, more moderate Republicans and Wall Street analysts have warned against Powell’s removal, arguing it could create fresh uncertainty in financial markets already grappling with interest rate volatility.