• Rep. Anna Paulina Luna (R-Fla.) has referred Fed Chair Jerome Powell to the DOJ, accusing him of perjury regarding the Fed’s $2.5 billion Eccles Building renovation.
  • Powell denies misleading Congress about cost overruns and luxury amenities, including a VIP dining room and rooftop garden, as the Fed launches an internal probe.
  • The controversy unfolds amid the Fed’s first annual operating losses and escalating political scrutiny over fiscal governance.

Powell Under Fire for Renovation Testimony

Federal Reserve Chair Jerome Powell is facing a criminal referral to the Department of Justice after Rep. Anna Paulina Luna (R-Fla.) accused him of lying under oath about the ballooning costs and luxury features of the Eccles Building renovation. The project’s budget has surged by approximately $600 million to a reported $2.5 billion, with alleged amenities like a VIP dining room and rooftop garden drawing bipartisan ire.

Powell, who testified before the Senate Banking Committee on June 25, 2025, has denied any false statements or regulatory violations. The Fed has since initiated an internal investigation into the renovation’s finances, according to people familiar with the matter. The referral marks an unprecedented escalation in congressional scrutiny of the central bank’s spending, particularly as it grapples with its first annual operating losses in history.

Political and Financial Fallout

The allegations arrive at a politically fraught moment. Conservative lawmakers, including Trump allies, have amplified calls for Powell’s removal, though former President Trump has publicly stated it’s "highly unlikely" he would oust Powell before his term expires in 2026. Meanwhile, the Fed’s monetary tightening cycle—which has contributed to its financial shortfall—has placed its fiscal decisions under a microscope.

Employees and market stakeholders are closely monitoring the situation, wary of how leadership instability could impact confidence. The DOJ’s review of the perjury claims, while legally challenging to prosecute, may prompt broader legislative reforms in federal project oversight. For now, the Fed’s independence remains intact, but the scandal has undeniably strained its relationship with Capitol Hill.