In a bold move, Florida Republican Representative Anna Paulina Luna has declared her intention to criminally refer Federal Reserve Chairman Jerome Powell to the Department of Justice.
The referral concerns allegations of perjury tied to the Federal Reserve's $2.5 billion headquarters renovation project. Luna's announcement, made via the social media platform X, marks a significant step as she becomes the first congressional member to seek criminal charges against Powell over this contentious renovation.
"I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building," Luna stated, underscoring the gravity of her accusations. As reported by RedState, the controversy originates from Powell's testimony before the Senate Banking Committee on June 25.
During this session, Powell refuted claims of extravagant features in the renovation, such as a "VIP dining room," "new marble," "special elevators," and "roof terrace gardens." These elements, however, were part of the original 2021 planning documents submitted to the National Capital Planning Commission.
The project's costs have ballooned from an initial estimate of $1.9 billion to $2.5 billion, drawing sharp criticism from officials within the Trump administration. They argue that Powell either misled Congress or breached federal planning protocols by altering approved designs without obtaining the necessary reauthorization.
Russell Vought, Director of the Office of Management and Budget, has been at the forefront of this criticism, accusing Powell of "grossly mismanaging" the renovation and violating the National Capital Planning Act. The administration contends that such misconduct could potentially justify Powell's removal "for cause," the sole legal avenue to dismiss a Fed chair before the conclusion of their term.
In defense of his actions, Powell responded with a letter clarifying that the disputed features were removed to "simplify construction and reduce the likelihood of further delays and cost increases." The Federal Reserve maintains that while it voluntarily collaborated with the planning commission, it is not legally obligated to seek approval for what it deems minor design changes.
While criminal referrals serve as formal requests for a DOJ investigation, they do not compel the department to file charges. As of now, the Justice Department has not indicated whether it will pursue an investigation into Luna's allegations.
This building renovation dispute adds another layer to President Trump's ongoing campaign against Powell, whose Federal Reserve policies have maintained steady interest rates despite the President's calls for reductions. With Powell's term extending until May 2026, the renovation issue provides the administration with fresh grounds for criticism against the Fed chairman.
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