Federal Reserve Chair Powell Faces Criminal Referral Over Eccles Building Renovations

Federal Reserve Chair Jerome Powell is under intense scrutiny following a formal criminal referral filed by Rep. Anna Paulina Luna, a Florida Republican. The referral, sent to the Department of Justice, accuses Powell of lying under oath to Congress on two separate occasions regarding the renovation of the Federal Reserve’s Eccles Building.

Luna’s allegations center on Powell’s testimony, which she claims downplayed the scope and cost of the renovations. According to Luna, Powell described the project as involving only basic updates, while documents submitted to the National Capital Planning Commission detail high-end upgrades, including private VIP dining areas, luxury marble finishes, and rooftop gardens. This discrepancy has led Luna to argue that Powell’s actions could constitute perjury, a crime punishable by fines and up to five years in prison.

This development marks a significant escalation in the political pressure on Powell, who was originally appointed by President Trump but is now seen as a political obstacle by many within the president’s circle. The allegations come amid broader political attacks from Trump-aligned conservatives over Powell’s interest rate decisions, with critics arguing that he did not align with Trump’s calls for more aggressive rate cuts.

In response to the allegations, Powell has requested a formal review of the project’s expenses by an independent watchdog and posted a detailed video tour of the renovation project on the Federal Reserve’s website. These actions appear aimed at countering claims of misrepresentation and reinforcing public trust.

The situation has sparked a heated debate, with some lawmakers and political figures calling for a thorough investigation into Powell's conduct. The allegations have also raised questions about the transparency and accountability of the Federal Reserve, an institution that plays a crucial role in shaping the nation's economic policies.

Powell, who has been at the helm of the Federal Reserve since 2018, has faced criticism from various quarters for his handling of monetary policy and economic issues. The current allegations add another layer of complexity to his tenure, as he navigates the challenges of leading the central bank during a period of economic uncertainty.

The Department of Justice will now review the referral and determine whether to pursue criminal charges against Powell. The outcome of this investigation could have significant implications for the Federal Reserve and its leadership, as well as for the broader economic landscape. The situation underscores the importance of transparency and accountability in public institutions, particularly those with far-reaching influence on the economy.