Federal Reserve Chair Jerome Powell is under fire as Florida Congresswoman Anna Paulina Luna has referred him to the Department of Justice for a potential criminal investigation. Luna accuses Powell of giving false testimony to the Senate regarding the costly renovation of the Federal Reserve’s Eccles Building in Washington, D.C.

Accusations of Misleading Testimony

According to Luna, Powell downplayed the scale and cost of the renovations during his June testimony, despite internal documents indicating the changes could cost up to $600 million. In a letter to the Justice Department, Luna claims Powell deliberately misled Congress, making significant false statements. She also questioned Powell's correspondence with the head of the Office of Management and Budget, in which he allegedly minimized the significance of the construction updates.

Growing Tensions Between Trump and the Fed

The referral comes amid mounting tension between Donald Trump and the Federal Reserve. Trump has repeatedly urged the Fed to slash interest rates by as much as 300 basis points. While Powell has so far held off, market analysts now estimate a 56% chance that the Fed will cut rates at its upcoming September meeting.

Though Trump previously considered removing Powell, he recently stated that such an option is off the table. However, he hinted that mounting legal or public pressure could still force Powell to resign.

Possible Penalties and DOJ Silence

If Powell is found guilty of perjury, he could face up to five years in prison and substantial financial penalties. The Department of Justice has yet to comment on the referral, and no formal charges have been filed.

White House Denies Influence by Treasury Secretary

Meanwhile, a Wall Street Journal report suggested that Treasury Secretary Scott Bessent played a role in convincing Trump not to remove Powell. Trump denied this on social media, stating: “Nobody had to explain anything to me. I know better than anyone what’s good for the market and what’s good for the USA.”

In an interview with CNBC, Bessent did not directly confirm the report but noted that the President seeks advice from a broad range of allies and advisors. The WSJ report claimed Bessent warned Trump that firing Powell could trigger market turmoil and legal battles.

Trump: Powell Is Blocking Affordable Housing

Trump recently called Powell a “dummy,” accusing him of making it harder for Americans—especially young people—to buy homes. He claimed Powell is preventing the Fed from lowering interest rates, which would make housing more affordable. Ironically, it was Trump who appointed Powell in 2018 to succeed Janet Yellen during his first term.


#TRUMP , #Powell , #Fed , #FederalReserve , #USPolitics

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