Florida Republican Representative Anna Paulina Luna escalated her attack on Federal Reserve Chair Jerome Powell, posting on X that she had criminally referred him to the Department of Justice for perjury related to the central bank's building renovation project. The project, which has ballooned to an estimated $2.5 billion, has become a flashpoint between the White House and the Fed over interest rate policy.
The Allegations: VIP Elevators and Beehives
Luna's post came a week after White House Office of Management and Budget Director Russell Vought sent a letter to Powell accusing him of lying to the Senate Banking Committee during a June 25 hearing. Vought claimed Powell testified that the Eccles Building had never been renovated, while records show it underwent a comprehensive overhaul between 1999 and 2003. Vought further alleged that Powell approved the construction of luxury perks including a “VIP dining room,” “special elevators,” and “beehives.” Powell flatly denied these claims in a written response on Thursday.
Powell's letter stated: “There are no special, private, or VIP elevators being constructed as part of the project. The original elevators of the Eccles Building are being rehabilitated…A short (eighteen-inch) extension of this rehabilitated elevator will make the space more accessible for people with disabilities.” He did not address the beehive allegations, and the Fed had not yet responded to Bitcoin.com’s inquiry at press time.
Trump's Shadow Over the Fed
President Donald Trump has repeatedly called Powell “dumb” and “stupid” for refusing to cut interest rates, claiming the federal government could save “one trillion dollars a year” on debt payments. Earlier this week, The New York Times reported that Trump brandished a draft letter firing Powell, a rumor the president later denied but qualified by saying, “We’re not planning on doing it… but I won’t rule anything out.” The perjury referral is widely seen as the latest weapon in that campaign.
The escalation puts Powell in a difficult position: if the DOJ investigates and finds he misled Congress, he could face legal consequences. Even if the investigation clears him, the political pressure may force him to reconsider his hawkish stance or resign. Vought’s letter made the administration's intent clear: “The President is extremely troubled by your management of the Federal Reserve System… Instead of attempting to right the Fed’s fiscal ship, you have plowed ahead with an ostentatious overhaul of your Washington D.C. headquarters.”
As the power struggle intensifies, the $2.5 billion renovation has become a proxy battle over Fed independence. Markets will watch closely for any rate decision at the next FOMC meeting, as pressure from both Congress and the White House mounts.