House Republican Anna Paulina Luna accuses Fed Chair Jerome Powell of perjury over statements on costly Federal Reserve renovations.

GOP Lawmaker Seeks DOJ Probe Into Fed Chief

Federal Reserve Chair Jerome Powell is at the center of mounting controversy after House Republican Anna Paulina Luna of Florida formally referred him to the Department of Justice for potential criminal prosecution. Luna alleges that Powell, a Trump appointee, committed perjury in his testimony before Congress and in written correspondence regarding extensive renovations at the Federal Reserve’s headquarters, the Eccles Building.

According to Luna’s letter to the Justice Department, Powell is accused of making “materially false claims” during sworn testimony on June 25, 2025, before the Senate Committee on Banking, Housing, and Urban Affairs. The hearing addressed the ballooning costs associated with the renovation of the Federal Reserve’s historic Eccles Building. Luna contends that Powell misled lawmakers about the scope of the renovations, the nature of the amenities included, and the reasons for a cost escalation from $1.9 billion to $2.5 billion.

Among the most serious allegations, Luna asserts that Powell denied the existence of high-end features—such as a VIP private dining room, luxury marble finishes, modernized elevators, decorative water features, and a rooftop terrace garden—when questioned by senators. Luna points to documents reviewed by congressional investigators and to Federal Reserve submissions to the National Capital Planning Commission, which, she argues, directly contradict Powell’s testimony and public statements.

Additionally, Luna accuses Powell of mischaracterizing the reason for the project’s soaring costs in a letter to the Office of Management and Budget. According to Luna, Powell described the changes as “minor,” a claim she states is unsupported by internal documents and correspondence from OMB Director Russell Vought. “While Powell presented the changes as simplifications, the actual project plans suggest the opposite,” Luna wrote in her letter to the DOJ.

Fed Responds as Political Pressure Mounts

The criminal referral carries serious potential consequences, as perjury before Congress can result in up to five years in prison and significant fines. In response to the allegations, Powell has categorically denied any wrongdoing and has called for an independent watchdog review of the Eccles Building renovation project’s costs and scope. The Federal Reserve’s website now features a video tour and detailed notes regarding the renovation plans, offering increased transparency as scrutiny intensifies.

Powell’s critics, led by conservative Trump allies, have been calling for his removal from office before his term expires in mid-2026. While Representative Luna has predicted President Donald Trump would soon fire Powell, the president has thus far said it is “highly unlikely,” though he has frequently criticized Powell for not lowering interest rates in line with administration wishes.

Some moderate Republicans and Powell’s supporters warn that firing the Fed chair could inject further instability into financial markets at a time of economic uncertainty. Powell has maintained that he and the Federal Reserve have acted appropriately and transparently throughout the renovation process.

As the Department of Justice reviews Luna’s criminal referral and independent investigations proceed, the outcome will have significant implications for the future leadership of the Federal Reserve and the relationship between the executive branch and the nation’s central bank.