Jerome Powell Referred to DOJ Over $2.5 Billion Fed HQ Scandal

- Powell faces DOJ referral over HQ renovation perjury allegations. - $2.5 billion cost overruns spark criminal inquiry into Fed Chair. Republican Representative Anna Paulina Luna has filed a referral with the Department of Justice against Federal Reserve Chair Jerome Powell, accusing him of perjury over a $2.5 billion renovation of the Federal Reserve headquarters. Despite the referral, Powell remains unwavering, claiming only death would prevent him from completing his term. Luna alleges that Powell misled Congress about the renovation's skyrocketing costs. Powell attributed the increase to "unforeseen conditions," such as the discovery of additional asbestos and toxic contamination during construction. On July 18, 2025, Cryptopolitan reported that Powell testified before Congress about the increasing expenses. The project, which began in 2021 after being approved in 2017 with a $1.9 billion budget, has seen its projected cost reach $2.5 billion. During a Senate Banking Committee hearing, Powell defended the renovation process, asserting there were "no new marble," "no special elevators," and "no new water features." He also clarified that the Federal Reserve, not taxpayers, funded the renovations. Despite political pressure and the criminal referral, Powell has resolutely refused to resign, maintaining he will fulfill his four-year term unless incapacitated. This controversy has prompted fresh debates over his leadership and fiscal policies, especially amid mounting challenges from Congress. In response, Powell has requested that the Federal Reserve’s inspector general conduct an additional review of the project. The controversy also drew comments from former President Trump, who suggested that Powell’s actions might warrant dismissal for "fraud," but he acknowledged that such an outcome was unlikely. Meanwhile, markets remain largely indifferent to the unfolding controversy, focusing instead on broader economic indicators. For instance, according to CoinMarketCap, Bitcoin (BTC) was trading at $30,215 as of 12:00 UTC on July 18, and its 24-hour trading volume had increased by 1.8%.