Rep. Anna Luna Urges DOJ to Probe Powell for Alleged Perjury Over 31.6% Cost Overrun in $2.5B Fed Renovation

A Republican congresswoman has intensified political pressure on Federal Reserve Chairman Jerome Powell by urging the U.S. Department of Justice to investigate him for alleged perjury. In a letter obtained by media, Representative Anna Luna, a vocal ally of Donald Trump, accused Powell of making "materially false statements" during a June 2025 Senate Banking Committee hearing. The allegations stem from Powell’s testimony about a $2.5 billion renovation of the Federal Reserve’s Eccles Building, where he allegedly denied the inclusion of luxury amenities and downplayed cost overruns.

Luna’s letter claims Powell misrepresented the scope of the project, contradicting internal documents reviewed by congressional investigators. She highlighted discrepancies between Powell’s sworn testimony and official records, including his denial of features such as a VIP dining room, marble finishes, and a roof garden—all of which were reportedly included in the final design. The congresswoman also alleged that Powell intentionally minimized the scale of cost increases, which rose from $1.9 billion to $2.5 billion, to obscure excessive spending. These actions, she argued, could constitute deliberate misrepresentation under federal perjury laws, a felony punishable by up to five years in prison.

Powell has denied the allegations, stating that an internal review of the project’s costs is already underway. While his office did not directly address the claims, it emphasized that the renovation remains subject to federal oversight. The controversy has deepened divisions within the Republican Party, as Luna—a Trump-aligned critic—pushes for accountability, while moderate Republicans warn that removing Powell could destabilize financial markets. Trump himself has repeatedly rejected calls to dismiss the Fed chief, despite his public frustration over slow interest rate cuts.

The political stakes are high as the Federal Reserve navigates an economic slowdown with mixed inflation and employment data. Critics argue Luna’s request reflects partisan motives, given her opposition to crypto legislation and alignment with Trump’s hardline economic rhetoric. Legal experts note that proving perjury requires clear evidence of intentional falsehoods, a standard that may be difficult to meet. However, the referral to the DOJ could embolden congressional Republicans to scrutinize the Fed more broadly, particularly as the 2026 election cycle approaches.

This dispute underscores growing tensions between Trump-aligned lawmakers and the Biden administration’s economic policies. While the Fed operates independently, its decisions directly influence interest rates, employment, and consumer behavior. The outcome could shape perceptions of the central bank’s institutional autonomy. For now, Powell remains in office, but the political pressures surrounding his leadership show no signs of easing, with implications for both the Fed’s credibility and the broader economic landscape.