House Republican Rep. Anna Paulina Luna, a staunch Trump ally, has launched a criminal referral against Federal Reserve Chairman Jerome Powell, accusing him of perjury related to his testimony and communications. The referral, first reported by Fox News Digital, claims Powell lied under oath regarding the renovation of the Federal Reserve’s Eccles Building. Luna alleges that Powell misrepresented the project’s scope and cost overruns, including false claims about the project being a minor expense and the existence of luxurious features like a VIP dining room and a roof terrace garden. These allegations come as conservative lawmakers continue to push for Powell’s removal despite his Trump appointee background and the upcoming end of his term in mid-2026.
Powell, who had previously denied any wrongdoing, stated that he is launching a formal watchdog probe into the cost of the Eccles Building renovation. He also highlighted that the Federal Reserve’s website now features a video tour of the project, along with notes on its proposed plans. However, Luna’s allegations have intensified political scrutiny, especially given the ongoing debate over monetary policy and Powell’s role in managing the economy amid Trump’s demands for rate cuts. The referral underscores the high-stakes political battle between Trump-aligned Republicans and the Federal, where Powell’s decisions are seen as critical to economic stability.
The referral also brings to light the broader tensions within the Republican Party, with more moderate members warning that removing Powell could lead to market instability. Meanwhile, Trump himself has publicly criticized Powell’s policies, particularly his resistance to lowering interest rates. Despite the pressure, Trump has not ruled out firing Powell, though he has emphasized that such a decision would have significant economic implications.