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Investing.com -- U.S. Representative Anna Paulina Luna has formally referred Federal Reserve Chair Jerome Powell to the Department of Justice for criminal investigation over allegedly misleading Congress about a taxpayer-funded renovation project.
The Florida Republican accused Powell of making "materially false claims" during testimony on June 25, 2025. In a post on X, Luna stated: "Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project. Lying under oath is a serious offense— especially from someone tasked with overseeing our monetary system and public trust."
In her letter to U.S. Attorney General Pam Bondi, Luna highlighted two specific statements she claims were false. First, Powell denied the existence of a VIP dining room, new marble, special elevators, water features, and roof terrace gardens in the renovation project. According to Luna, the Federal Reserve’s final submission to the National Capital Planning Commission contradicts nearly all these assertions.
Luna also challenged Powell’s claim that the Eccles Building "had never had" a serious renovation before the current project. She noted that the Federal Reserve Board conducted a comprehensive renovation from 1999 to 2003, which included replacing the roof, all major systems, and refurbishing interior and courtyard spaces.
The referral requests the Justice Department to investigate whether Powell violated federal laws regarding false statements to Congress.
Despite the criminal referral, betting markets don’t see Powell being removed as Fed Chair this year. Currently there is just a 20% chance of such a move this year, according to Polymarket.