Trump Ally Initiates Charges Against Powell in Perjury Controversy
Federal Reserve Chairman Jerome Powell is once again at the center of a political storm. Florida Republican Representative Anna Paulina Luna has formally submitted a motion to the Department of Justice for criminal charges, alleging that Powell “deliberately lied” twice during his Senate testimony regarding the renovation costs of the Federal Reserve's Eccles Building headquarters. Under U.S. law, perjury can result in up to five years of imprisonment and fines.
Renovation Project Alleged Misleading; Congressional Testimony Questioned
It is claimed that in a hearing before the Senate Banking Committee on June 25, 2025, Powell misstated details of the renovation project and its budget control. Luna accuses Powell of denying the renovation included “luxury amenities” such as a VIP restaurant, rooftop water features, and gardens, which were indeed present in the plans submitted to the National Capital Planning Commission.
Furthermore, when responding to the budget overrun issue, Powell referred to the $600 million cost increase as a “minor adjustment,” a statement Luna deemed misleading, as it contradicted documents reviewed by Congressional investigators.
Federal Reserve Yet to Respond; Oversight Investigation Launched
Amid these accusations, the Federal Reserve Chairman has not yet officially responded, but foreign media reports indicate that Powell has ordered an independent audit of the project costs. The Federal Reserve's website has now publicly released a video tour of the project to alleviate external skepticism.
Internal sources at the Federal Reserve claim the renovation project aims to ensure workplace safety and improve security systems, denying any unnecessary luxury refurbishments.
Political Pressure Mounts; Powell's Tenure Under Scrutiny Again
This incident occurs as Trump’s camp is increasing pressure on Powell. Although former President Trump has not publicly announced plans to dismiss him, his allies persistently signal Powell's unsuitability through social media and Congress.
Notably, Luna has posted on social platform X predicting that Trump “will soon dismiss Powell.” In the midst of the current tense political environment and criticism of Federal Reserve policies, this topic has rapidly escalated.
Diverging Views Impact Market Confidence
While Trump supporters push for accountability, moderate Republicans and some in the financial sector call for institutional independence, warning that replacing Powell could undermine market confidence and even trigger significant market volatility.
Wall Street analysts highlight that if Powell steps down or the legal case escalates, it could challenge the Federal Reserve’s independence in setting interest rate paths. Investors have started to adjust their expectations regarding interest rate policies for the year, leading to increased volatility in the dollar and U.S. bond markets.
