Fed Chair Jerome Powell Hit With Criminal Referral by House GOP Trump

Federal Reserve Chair Jerome Powell is now facing a criminal referral to the Department of Justice, as House GOP Rep. Anna Paulina Luna, a close ally of former President Donald Trump, accuses him of lying under oath on two separate occasions related to the costly renovation of the Fed’s historic Eccles Building.

The referral, first reported by Fox News, alleges that Powell made “materially false claims” during sworn Senate testimony in June and in communications with the Office of Management and Budget (OMB). Specifically, Luna claims Powell misrepresented luxury upgrades—including a VIP dining room, premium marble finishes, water features, and a rooftop terrace—while downplaying the scope and cost of a renovation that has ballooned from $1.9 billion to $2.5 billion.

“Powell publicly denied these features existed. The project plans suggest the opposite,” Luna wrote in her DOJ letter.

Perjury Claims and Renovation Fallout

Luna says Powell’s statements to the Senate Banking Committee and to OMB Director Russell Vought mischaracterized the nature of the upgrades.
Powell claimed the changes were minor, designed to avoid further construction delays.
However, Congressional investigators found the revised plan included luxury features Powell had denied existed.
Perjury—if proven—can carry up to five years in prison and monetary fines.

Powell has denied all wrongdoing, and according to Mortgage Professional America, has ordered an internal watchdog investigation into the renovation’s budget increases. The Fed has also added a video tour and renovation documents to its website in an apparent move toward transparency.

Political Pressure Mounts as Trump Allies Target Powell

Luna previously suggested on X (formerly Twitter) that Trump would soon fire Powell, whose term runs through mid-2026. Trump himself has been publicly attacking Powell for months, accusing him of keeping rates too high despite signs of slowing inflation.

Still, Trump told reporters recently that it was “highly unlikely” he would fire Powell, possibly due to the legal and market consequences of removing a Fed Chair mid-term.

The criminal referral adds a new dimension to the already fraught relationship between the Fed and the Trump camp. It also comes amid broader concerns about the independence of the Federal Reserve, especially after Trump’s repeated criticisms and veiled threats. Former Fed Chair Janet Yellen recently said Trump’s rhetoric mirrors that of “a banana republic about to print money to fund deficits.”

What’s Next?

The DOJ has not yet responded to Luna’s referral.
Powell is expected to continue testifying before Congress later this quarter.
The Fed’s internal probe into the Eccles Building renovations is ongoing.
Markets may react if the political pressure escalates further, especially ahead of the Fed’s September meeting, where rate cut odds are rising.