Trump Allies Target Fed Chair Powell Over $2.5 Billion Renovation, Push 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 White House and Trump allies are using the project's ballooning budget as grounds to pressure Powell, with some suggesting it could justify his removal. In response, Powell has asked the Fed's inspector general to review the renovation's expenses and defended the project as necessary modernization.

The controversy highlights deepening political interference in the central bank and growing GOP divisions over the issue.