Trump Allies Target Fed Chair Powell Over $2.5 Billion Renovation, Pushing for Criminal Probe

A $2.5 billion renovation of the Federal Reserve's Washington, D.C. headquarters has become the latest flashpoint in escalating tensions between the Trump administration and Fed Chair Jerome Powell.

Republican lawmakers, led by Rep. Anna Paulina Luna, have referred Powell to the Department of Justice for alleged perjury, claiming he misled Congress about the renovation's costs. The Trump administration is using the project's ballooning price tag as leverage to pressure Powell, with some officials seeking grounds for his removal. In response, Powell has asked the Fed's inspector general to review the renovation's expenses and has publicly defended the project's necessity and transparency.

The controversy underscores broader political battles over the Fed's independence and fiscal policy as the White House intensifies its scrutiny of central bank leadership.