Federal Reserve Chair Powell Accused of Perjury Over $2.5 Billion Project

U.S. House Representative Anna Paulina Luna has formally accused Federal Reserve Chair Jerome Powell of perjury, a serious allegation that has sparked significant attention in political and financial circles. The accusation stems from Powell's testimony before Congress regarding a $2.5 billion building renovation project. Luna, a Republican from Florida, has referred Powell for criminal investigation, citing what she believes to be false statements made under oath.

The controversy centers around Powell's testimony, where he allegedly made statements that Luna contends were misleading or outright false. The specifics of the alleged perjury involve discrepancies between Powell's public statements and the actual details of the renovation project. Luna's referral to the Department of Justice for a criminal investigation underscores the gravity of the accusations and the potential legal ramifications for Powell.

In a letter to the Department of Justice, Luna wrote that on June 25, 2025, Powell testified under oath before the U.S. Senate Committee on Banking, Housing, and Urban Affairs regarding the renovation of the Eccles Building of the Federal Reserve. Luna alleges that Powell made several material false statements during this testimony. Additionally, in a letter to the Director of the U.S. Office of Management and Budget, Powell claimed that the change in the project's cost from $1.9 billion to $2.5 billion was insignificant. However, documents reviewed by congressional investigators indicate that the scope of this project and the cost overrun are not minor in nature or substance.

This development comes at a time when the Federal Reserve is already under intense scrutiny for its monetary policies and economic decisions. The accusation of perjury adds another layer of complexity to the Fed's operations, as it navigates the delicate balance between economic stability and political pressure. Powell, who has been at the helm of the Federal Reserve since 2018, has faced criticism from various quarters for his handling of the economy, particularly in the wake of the COVID-19 pandemic.

The accusation of perjury against Powell is not the first time a high-ranking official has faced such allegations. However, the timing and context of this particular case are noteworthy. With the economy still recovering from the pandemic and inflation rates rising, the Federal Reserve's actions are under a microscope. Any perceived misconduct or lack of transparency could further erode public trust in the institution.

Luna's move to refer Powell for criminal investigation is a bold one, and it remains to be seen how the Department of Justice will proceed. The allegations, if proven, could have serious consequences for Powell and the Federal Reserve. However, it is important to note that the accusation is just the beginning of a potentially lengthy legal process. Powell has the right to defend himself against the allegations, and the outcome will depend on the evidence presented and the legal proceedings that follow.

The political implications of this case are also significant. The accusation of perjury against Powell comes at a time when the Federal Reserve is already facing criticism from both sides of the political spectrum. Some lawmakers have called for greater transparency and accountability from the Fed, while others have accused the institution of overstepping its bounds. The allegations against Powell could further polarize the debate and make it more difficult for the Fed to operate independently.

Perjury is punishable by a fine and up to 5 years in prison. The outcome of this case will have significant implications for the Federal Reserve and its leadership, as well as for the broader economic and political landscape. The allegations against Powell highlight the importance of transparency and accountability in public institutions, and the need for rigorous oversight to ensure that those in positions of power are held to the highest standards of integrity.