US Fed Chair Jerome Powell Accused of Lying to Congress Over $2.5 Billion HQ Renovation With VIP Perks and Rooftop Gardens

Powell Accused Of Misleading Senate Over $2.5 Billion Federal Reserve Project

Federal Reserve Chair Jerome Powell is facing a criminal referral to the Department of Justice after being accused of lying under oath about the scale and cost of renovations to the central bank’s headquarters in Washington, D.C.

Representative Anna Paulina Luna, a Republican from Florida, has alleged that Powell knowingly misrepresented details of the $2.5 billion overhaul of the historic Eccles Building during sworn testimony before the Senate Banking Committee on 25 June.

She claims Powell downplayed extravagant design features and provided false information about previous renovations and the scope of recent upgrades.

From ‘Minor Changes’ To Marble And Rooftop Gardens

The controversy centres on Powell’s testimony, where he described the changes as “minor” and necessary to address safety and structural issues in the 90-year-old building.

However, internal documents obtained by congressional investigators reportedly tell a different story.

According to Luna’s referral, the latest plans submitted to the National Capital Planning Commission outline luxury features including a VIP dining room, premium marble finishes, modern elevators with direct access to board offices, rooftop terrace gardens, skylights, and even Italian beehives.

These were omitted in Powell’s statements to Congress and, in a separate letter to the Office of Management and Budget, he again downplayed the significance of the enhancements.

Luna wrote on X,

“Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project.”

In her letter to the DOJ, she also noted the Federal Reserve previously undertook a major renovation from 1999 to 2003 — contradicting Powell’s claim that the building “had never had” a full refurbishment.

Federal Watchdog And Powell Push Back On Claims

The Federal Reserve’s own inspector general had reported earlier this year that renovation costs were projected at $2.4 billion, with completion scheduled for 2027.

In response to the controversy, Powell has reportedly ordered a formal review into the project’s spending and denied all allegations of perjury.

Jerome Powell is the first Federal Reserve Chair in over 40 years without a Ph.D. in economics.

Meanwhile, the Fed has released video tours and documentation on its website showcasing the renovation plans, but has not directly addressed the criminal referral in public statements.

Trump Allies Pressure Fed Chief As Political Tensions Grow

This legal challenge comes amid ongoing political pressure from President Donald Trump and his allies, many of whom are openly calling for Powell’s removal before his term ends in mid-2026.

Although Trump appointed Powell in 2018, their relationship has soured over time — mainly due to Powell’s reluctance to slash interest rates as Trump demands aggressive monetary easing.

Recently, Trump again pressed the Federal Open Market Committee to cut rates by as much as 300 basis points.

Market watchers are now pricing in a 56.1% chance of a rate cut during the Fed’s next meeting in September.

Trump, who once reportedly considered firing Powell, has now said that doing so is “highly unlikely” but hinted the ongoing scrutiny could drive Powell to step down.

Trump posted on social media in response to reports that Treasury Secretary Scott Bessent persuaded him not to remove the Fed chief.

“Nobody had to explain that to me. I know better than anybody what’s good for the Market, and what’s good for the U.S.A.”

Political Fallout Over Federal Reserve’s Public Spending

Senate Banking Committee Chairman Tim Scott criticised Powell’s justification for the renovation costs during last month’s hearing.

“We can all agree that updating aging infrastructure is a legitimate need, but when senior citizens can barely afford Formica countertops, it sends the wrong message to spend public money on luxury upgrades that feel more like they belong in the Palace of Versailles than a public institution.”

The Eccles Building was originally completed in 1937.

With the renovation underway, more than 3,000 Fed employees have been relocated to a neighbouring building, upgraded in 2021.

Legal Stakes Could Be Significant But Difficult To Prove

If found guilty of perjury, Powell could face up to five years in prison along with financial penalties.

However, legal experts say perjury remains one of the toughest charges to prove, requiring clear evidence that a false statement was made knowingly and was materially relevant.

Luna, however, maintains the issue is serious.

“Lying under oath is a serious offence — especially from someone tasked with overseeing our monetary system and public trust.”