Politics
GOP Rep. Refers Fed Chair For Criminal Prosecution
Jerome Powell, the Federal Reserve chairman whom President Donald Trump has openly mused about firing, may become the focus of an investigation after a GOP congresswoman referred him for criminal prosecution.
Rep. Anna Paulina Luna (R-FL), a close ally to Trump, accused Powell of perjury as he works to steer the nation’s bank through a $2.5 billion renovation of its Washington, D.C. headquarters that’s already gone far over budget. Powell testified to the U.S. Senate Banking Committee last month, where he provided answers that members of the Trump administration have slammed as a “deceptive” characterization of the profligate spending taking place on his watch.
“I am criminally referring Jerome Powell to the DOJ to investigate perjury regarding his crazy $2.5BN building,” Luna wrote in a social media post that has already racked up 1.3 million views.
Her referral comes after Federal Housing Finance Agency Director Bill Pulte sent a leaked letter to the Senate asking for a criminal investigation into Powell’s claims that his agency’s renovations are being done responsibly.
“I am asking Congress to investigate Chairman Jerome Powell, his political bias, and his deceptive Senate testimony, which is enough to be removed ‘for cause,'” the federal housing director wrote earlier this month.
“Jerome Powell’s $2.5B Building Renovation Scandal stinks to high heaven, and he lied when asked about the specifics before Congress. This is nothing short of malfeasance,” he added, the NY Post reported.
President Trump followed Pulte’s statement with one of his own, where he mocked his Fed foe with another signature nickname paying homage to their differences.
“‘Too Late’ should resign immediately!!!” Trump wrote, referring to Powell’s repeated refusal to lower interest rates.
The Fed’s renovations date back to 2017 when its Board of Governors approved the massive project, “subject to annual budget approval by the Board since then.” The agency’s website states that the Board’s independent Office of Inspector General has had “full access to the project information on costs, contracts, schedules, and expenditures and receives monthly reports on the construction program.”
However, since the renovation was initially projected to cost $1.9 billion, it has since ballooned by about $700 million, alarming fiscal conservatives who question whether the nation’s central bank is capable of managing its own in-house affairs.
The Fed attributed the price increase to the rising cost of steel and cement used in construction, as well as other materials used to perform work underground, the Daily Caller reported.
Trump has poured gasoline on the fire by suggesting that Powell tacitly approved lavish corporate dining rooms and elevators, accusations the Fed chair has denied.
At an Oval Office gathering last week, the president clarified that he isn’t currently planning to fire Powell but stood by his belief that he is doing a “terrible” job stewarding the economy.
“No, we’re not planning on doing anything. He’s doing a little renovation for $2.5 billion of the Fed, building a renovation and they have close to a $900 million cost overrun, and it’s a shame. But the biggest cost overrun is the cost overrun for interest rates, because we should be paying 3 points lower and we would be saving a trillion dollars a year,” Trump said after news surfaced he was preparing to fire Powell.