Jerome Powell, Chairman of the U.S. Federal Reserve, has been accused of giving false testimony under oath. Florida Congresswoman Anna Paulina Luna submitted two criminal referrals to the U.S. Department of Justice, citing alleged misrepresentation related to the large-scale renovation of the Fed’s headquarters in Washington, D.C.
According to Luna, Powell made misleading statements on June 25, 2025, while testifying before the Senate Banking Committee. He claimed that changes to the renovation plans for the Eccles Building were minor. However, as Luna asserts, documents reviewed by investigators tell a different story: the project’s budget increased from $1.9 billion to $2.5 billion and includes high-end elements such as VIP lounges, fountains, marble finishes, and a terraced garden. Luna says Powell publicly denied the existence of these features.
Trump Previously Sought to Remove Powell
The accusations come amid mounting political pressure from Donald Trump’s administration. According to The New York Times, a draft letter of Powell’s resignation had already been prepared at the White House last week. Trump has openly criticized Powell for refusing to cut interest rates quickly despite mounting concerns over an economic slowdown.
Although the former president stated publicly that he did not want to fire Powell, last Friday he once again called Powell’s performance “terrible.” William J. Pulte, Director of the Federal Housing Administration, confirmed that “his resignation speech is coming soon.”
Potential Market Implications
Powell’s possible dismissal is adding tension to financial markets, especially in the crypto sector. Dominick John, an analyst at Kronos Research, noted that rumors about Powell’s removal are undermining investor confidence and increasing volatility. He warned that the presence of a “shadow Fed” operating in parallel to official policy further complicates forecasting future monetary decisions.
Senator Elizabeth Warren stated that if Trump succeeds in ousting Powell, it could trigger a collapse in U.S. markets. Despite the fact that Trump originally appointed Powell to the position in 2017.
If the Department of Justice finds Powell guilty, he could face up to five years in prison and a fine.
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