Rep. Anna Paulina Luna has accused Jerome Powell of lying under oath regarding the Eccles Building renovation project.
The renovation project's budget increased from $1.9 billion to $2.5 billion, raising concerns about lavish amenities and misrepresented costs.
Critics have compared the renovated headquarters to the Palace of Versailles, questioning the necessity of the upgrades.
Powell has denied the accusations of perjury and initiated a watchdog probe into the renovation project costs.
Why this matters:: The referral and renovation controversy add pressure on Powell, who has already faced criticism from Trump allies for not cutting interest rates. The situation could further destabilize market confidence in the Federal Reserve.
The controversy stems from Powell's testimony before the Senate Banking, Housing, and Urban Affairs Committee on June 25, 2025, regarding the Federal Reserve’s Eccles Building renovation. Luna alleges that Powell made materially false claims about the building's amenities and misrepresented the state of its maintenance.
Specifically, 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's letter to the DOJ claims that Powell characterized the $600 million cost increase as minor, which she argues is contradicted by the Federal Reserve’s final submission to the National Capital Planning Commission (NCPC) and OMB Director Russell Vought’s original letter to Powell.
Powell has defended the project, stating that the Federal Reserve is committed to transparency and accountability. The Federal Reserve's website now includes a video tour of the renovation and notes on its proposed plans, aiming to provide clarity on the project's scope and objectives. However, critics remain skeptical, comparing the over-budget project to extravagant landmarks and questioning the justification for such extensive renovations.
Q: What are the accusations against Jerome Powell?
He is accused of perjury for allegedly lying under oath about the Federal Reserve’s Eccles Building renovation project and misrepresenting the costs and amenities involved.
Q: Why is the renovation project controversial?
The project's cost has ballooned from $1.9 billion to $2.5 billion, leading to criticism about lavish spending and unnecessary upgrades, especially as some question the project's transparency.
Q: What has been Powell's response to these accusations?
Powell denies the accusations and has initiated a formal watchdog probe into the renovation project costs. He has also provided information on the project's history, goals, and cost drivers on the Federal Reserve’s website.
Jerome Powell is facing a DOJ referral for allegedly lying under oath regarding the Federal Reserve renovation project.
The Eccles Building renovation project has faced scrutiny due to its escalating costs and accusations of lavish amenities.
Powell maintains transparency and denies any wrongdoing, initiating a probe into the project's expenses.
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