Trump Ally Luna Files Criminal Complaint Against Fed Chair Powell Over Renovation Costs

Republican member of the US House of Representatives Anna Paulina Luna, known for her close ties to Donald Trump, has filed a criminal complaint with the Justice Department against Federal Reserve Chair Jerome Powell. The complaint accuses Powell of making false statements to Congress on two separate occasions, specifically during his testimony before the Senate Banking, Housing and Urban Affairs Committee on June 25, 2025. Luna alleges that Powell hid lavish details and misrepresented the state of maintenance regarding the renovation of the Eccles Building, the Fed's headquarters. The project, which includes luxury features such as a VIP dining room, premium marble finishes, modern elevators, water features, and a rooftop garden, has seen its cost increase from $1.9 billion to $2.5 billion. Powell attributed this increase to "minor changes," a claim that Congressional documents have denied. Luna argues that Powell misrepresented the existence of these features in his testimony.

Luna announced her intention to file the criminal complaint last week on the X (formerly Twitter) platform. Under US law, making false statements to Congress can result in up to five years in prison and a fine. Powell has denied all accusations and has ordered an independent audit of the Eccles Building's renovation costs. A video tour and detailed information about the renovation project have been added to the Fed's official website. Luna had previously expressed her belief that Trump would fire Powell, but Trump stated that it was “very unlikely” he would do so.

The political landscape surrounding the Federal Reserve is intensifying as allies of Trump take significant actions that could lead to the departure of Fed Chair Jerome Powell. With less than a year remaining in Powell's term, preparations for his potential replacement are underway. This development occurs against a backdrop of increasing tension between the Trump administration and the Federal Reserve, with some of Trump's closest allies advocating for Powell's removal. One of the most notable actions taken by Trump's allies is the criminal referral of Powell by Rep. Anna Paulina Luna. Luna, a staunch Trump supporter, has referred Powell for criminal charges over perjury. This move is seen as a direct challenge to Powell's leadership and could potentially pave the way for his removal. The referral, which alleges that Powell committed perjury, has added fuel to the fire of the ongoing political battle between the Trump administration and the Federal Reserve.

The potential removal of Powell has sparked speculation about who might replace him. Trump has been vocal about his dissatisfaction with Powell's leadership, describing him as a "terrible Fed chair." This dissatisfaction has led to discussions about potential replacements, with several names being floated as possible successors. Among the candidates being considered are individuals who are known for their alignment with Trump's economic policies and views on monetary policy. The political maneuvering around Powell's potential removal is not without its risks. The Federal Reserve plays a crucial role in shaping the nation's economic policy, and any changes at the top could have significant implications for the economy. The uncertainty surrounding Powell's future has raised concerns about the stability of the Federal Reserve and its ability to navigate the current economic challenges.

The situation is further complicated by the fact that Powell's term is set to expire in early 2022. This means that any decision to remove him would need to be made within the next few months. The timing of this potential move is critical, as it could have a significant impact on the Fed's ability to implement its policies and respond to economic developments. The political battle over Powell's future is likely to continue in the coming months, with both sides digging in their heels. Trump's allies are determined to see Powell removed, while Powell's supporters are fighting to keep him in place. The outcome of this battle will have far-reaching implications for the Federal Reserve and the broader economy. As the situation unfolds, it will be important to monitor the developments closely and assess their potential impact on the nation's economic policy.