>> Continued From the Previous Page <<
The issue? Powell downplayed the extent and cost of lavish additions that have pushed the project $600 million over budget — features like a “VIP private dining room,” “premium marble finishes,” and even “a roof terrace garden.”
According to Luna, Powell told Congress that the upgrades were minor and driven by rising construction material prices, such as steel and concrete. But internal records and federal planning documents tell a different story.
“According to those records, the revised plan includes a VIP private dining room, premium marble finishes, modernized elevators, water features, and a roof terrace garden—features that Powell publicly denied existed,” Luna wrote. “While Powell presented the changes as simplifications, the actual project plans suggest the opposite.”
Luna’s criminal referral signals a major escalation in Republican efforts to hold bureaucrats accountable as inflation continues to squeeze American families and Powell resists growing calls to slash interest rates. The Fed chief’s resistance has made him a target of Trump allies who want more aggressive action to stimulate the economy ahead of the 2026 election cycle.
“Separately, in a letter to the Office of Management and Budget (OMB) Director Russell Vought, Chairman Powell characterized the changes that escalated the cost of the project from $1.9 billion to $2.5 billion as minor. However, documents reviewed by congressional investigators indicate that the scope and cost overruns of this project were neither minor in nature nor in substance,” Luna’s letter explained.
Despite the mounting controversy, Powell has firmly denied any wrongdoing, brushing off accusations of perjury and calling for an internal probe into the Fed’s construction project. Trade publication Mortgage Professional reports that Powell himself has asked for a watchdog investigation into the matter.
Meanwhile, Luna continues to lead the charge. Last week, she publicly vowed on X (formerly Twitter) to pursue criminal charges against Powell. Perjury before Congress is a felony offense that carries up to five years in federal prison.
Luna’s political instincts are tuned to Trump’s America First base, many of whom blame Powell for dragging his feet on interest rate cuts while American consumers battle high borrowing costs. Her message to the DOJ is clear: no one is above the law — not even the central bank chief.
Adding another layer to the drama, Luna hinted that Trump would “likely fire” Powell if re-elected. However, the former president appeared to pump the brakes, telling reporters last week he is “not planning” to oust the Fed chairman just yet. The comment surprised some allies and reignited debates over just how much power the White House holds over the Federal Reserve’s top official.
Though Trump’s remark may have temporarily cooled speculation, legal experts point out that a Supreme Court ruling has affirmed the Fed chair’s independence from the executive branch — potentially complicating any future move to remove Powell before his term ends.
Still, Luna’s bold move has set Washington ablaze. With the DOJ now formally referred the matter, the ball is in Attorney General Merrick Garland’s court. Whether the Biden-controlled Justice Department acts on it is another story — but the political storm has only just begun.
As the 2026 election season heats up, this scandal could become yet another battleground where Trump’s America First movement takes on the entrenched D.C. elite. Stay tuned.
