The accusations center around two key points. First, during his June 25 testimony before the Senate Banking Committee, Powell claimed the renovation included no luxury features. However, project documents revealed elements like marble finishes, private dining areas, terrace gardens, and VIP elevators. Secondly, in an official letter to Vought, Powell presented a $600 million cost increase as a minor adjustment, but Congressional records show significant project impacts. 

Perjury Allegations: Powell Faces Up to 5 Years in Prison 

Luna stated that Powell provided false information in two separate sworn statements — a serious offense under U.S. law. Perjury can result in up to five years in prison and fines. Such charges could also damage a public official’s reputation and potentially lead to removal from office. 

Trump continues to escalate his pressure on Powell. He is urging the Federal Open Market Committee (FOMC) to implement a 300-basis-point interest rate cut, arguing that inflation has declined and rate cuts are overdue. Trump has even floated the idea of removing Powell from office, though insiders say he may avoid taking that step directly. Still, if fraud allegations gain traction, Powell might be forced to resign. 

Markets are closely watching the situation. As of now, the probability of a Fed rate cut in September has risen to 56.1%. However, the July 30 FOMC meeting is expected to leave rates unchanged, with CME FedWatch data showing a 97.4% likelihood of holding steady — largely due to strong June employment figures. 

Fed Under Political Pressure: Are Economic Decisions at Risk? 

Powell’s legal troubles represent more than a personal issue — they challenge the independence of the entire Federal Reserve. Luna’s referral isn’t merely about project details; observers interpret it as a sign of mounting political pressure. 

The key concern now is whether the Fed will base future rate decisions on market data or yield to political influence. Trump’s statements and Luna’s move underscore the intensifying political spotlight on Powell and the central bank.

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The post Rep. Luna Refers Powell to DOJ Over Perjury Claims! appeared first on Coin Engineer.

Pulte’s allegations revolve around the planned modernization project of the Fed’s nearly century-old headquarters. Powell had stated that the building would not include “VIP dining rooms, new marble, private elevators, or rooftop gardens.” However, documents submitted to the National Capital Planning Commission clearly show “landscaped and occupiable rooftop terraces” as part of the plan. 

Tension Rises Between Renovation Project and Interest Rate Policy Criticism 

The contradictions in Powell’s statements are not limited to architectural details. FHFA Director Pulte emphasizes that the Fed’s interest rate policies have severely damaged the housing market. 

In a statement shared on X , Pulte said: 

“This is nothing but abuse of power and warrants removal ‘for cause.’ Federal Reserve Chair Powell must be immediately investigated by Congress. You have cost the U.S. a fortune. And you continue to do so.” 

Pulte stated that the Fed’s renovation project created an image of an out-of-touch and luxury-focused institution. He stressed that this approach undermines public trust. “This is nothing but negligence of duty and should be considered ‘for cause’ grounds for Powell’s removal,” he said. He also mentioned that the Fed was “too late” in lowering interest rates. Furthermore, he said these statements alone justify Powell’s removal “for cause.” 

U.S. Federal Housing and the Fannie Mae and Freddie Mac Chairman Calls on Congress to Investigate Jerome Powell pic.twitter.com/E6P9MobJOa

— Pulte (@pulte) July 2, 2025

Senate Banking Committee Chair Tim Scott also asked Powell direct questions about the project. Meanwhile, Powell denies media comparisons to the “Palace of Versailles,” arguing there are no extravagant elements in the project. However, since the planning documents contradict Powell’s statements, lawmakers are expected to evaluate these conflicting claims. 

Pressure on the Fed’s Independence Increases 

Pulte’s statements are viewed as part of the Trump administration’s systematic pressure campaign against Fed Chair Powell. Meanwhile, President Trump has also expressed his desire to replace Powell with another candidate. 

How Congress responds to FHFA’s request in the coming days will affect not only Powell’s future but also the Fed’s independence. 

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The post Pulte: “Powell Is Lying, Immediate Investigation Must Be Launched!”  appeared first on Coin Engineer.