Rep. Luna Demands DOJ Criminal Probe of Fed Chair Powell Over Perjury and Eccles Building Renovation Costs

A significant political and financial confrontation is intensifying in Washington, as Republican Representative Anna Paulina Luna has formally requested the U.S. Department of Justice initiate a criminal investigation into Federal Reserve Chair Jerome Powell. The core of her accusation centers on allegations of perjury and the deliberate concealment of excessive expenditures related to the extensive renovation of the Eccles Building, the Federal Reserve’s headquarters. This high-profile challenge to the Fed Chair underscores rising tensions between conservative political factions and the nation’s central bank, a dynamic with potentially far-reaching implications for financial market stability and the perceived independence of the Federal Reserve.

• Republican Representative Anna Paulina Luna has formally requested a U.S. Department of Justice criminal investigation into Federal Reserve Chair Jerome Powell.
• The allegations include perjury and deliberate concealment of excessive expenditures for the Eccles Building renovation.
• The renovation cost reportedly escalated from an initial estimate of $1.9 billion to $2.5 billion.
• Chair Powell has denied the accusations and initiated an internal investigation into the renovation expenditures.
• The Federal Reserve maintained its benchmark interest rate at 4.5% in June, marking the fourth consecutive time.
• A Supreme Court ruling in April affirmed the President’s authority to dismiss certain Federal Reserve employees.

According to Rep. Luna, an ally of President Donald Trump, Chair Powell provided materially false statements under oath during a recent hearing before the Senate Banking Committee. Her claims specifically target Powell’s testimony regarding the nature and cost of the Eccles Building reconstruction. Luna asserts that Powell denied the inclusion of opulent amenities, such as VIP dining facilities, marble finishes, elaborate water installations, a rooftop garden, and modern elevators, despite their apparent presence in project plans. Furthermore, she alleges that the renovation’s cost significantly escalated from an initial estimate of $1.9 billion to $2.5 billion, a scale she argues was intentionally downplayed.

The Congresswoman’s submission to the Department of Justice highlights what she describes as a deliberate misrepresentation of the updated reconstruction plan. Luna contends that Powell presented the project as simplified to obscure its true scope and mounting costs. She cites discrepancies between Powell’s statements and official plans filed with the National Capital Planning Commission, as well as initial approvals granted by Office of Management and Budget Director Russell Vought. This challenges the transparency and oversight of significant public expenditures within a critical federal institution.

Political Crosscurrents and Monetary Policy Implications

In response to these allegations, Chair Powell has reportedly denied all accusations of false testimony and has initiated an internal investigation into the renovation expenditures. However, this administrative action has not diffused the political pressure. Rep. Luna has openly called for Powell’s removal, reflecting a segment of conservative opinion that has long been critical of the Fed’s policies and leadership. President Trump, while having previously expressed dissatisfaction with Powell, stated in April that he did not intend to dismiss the Fed Chair, signaling a nuanced stance within the Republican Party.

Concerns over the potential for market instability underscore the delicate political balance. Moderate Republicans and supporters of Chair Powell have voiced apprehension that his ouster could trigger significant volatility across various financial markets, particularly given the Federal Reserve’s pivotal role in global economic stability. This ongoing conflict is further exacerbated by persistent criticism from President Trump and his allies regarding the Fed’s interest rate policy. Despite calls for rate reductions, the Federal Reserve maintained its benchmark interest rate at 4.5% for the fourth consecutive time in June, with Powell reiterating the central bank’s assessment that a policy easing was not currently warranted.

The broader context of this dispute includes President Trump’s long-standing public criticisms of Jerome Powell, which began early in his presidency. Adding another layer of complexity, a temporary ruling by Supreme Court Chief Justice John Roberts Jr. in April affirmed the President’s authority to dismiss certain Federal Reserve employees. This legal precedent, while not directly addressing the Chair’s position, highlights the ongoing tension over the Fed’s independence versus executive oversight, setting the stage for a prolonged and impactful scrutiny of the institution’s operations and its leadership.