Fed Chair Powell Faces DOJ Referral, Resignation Speculation amid $2.5B HQ Probe

Federal Reserve Chair Jerome Powell is facing significant scrutiny as he prepares to deliver a speech at a Washington, D.C. conference amid growing political and legal pressures. Rep. Anna Paulina Luna has formally referred Powell to the Department of Justice for a criminal investigation, accusing him of perjury related to the Fed’s $2.5 billion renovation of its headquarters, specifically alleging that Powell misled Congress about luxury features included in the project. Concurrently, William John Pulte, director of Federal Housing, hinted at a possible upcoming resignation speech from Powell, though he clarified it may not be addressed in the imminent remarks. Powell is also under intense criticism from President Trump and Treasury Secretary Scott Bessent, both of whom have questioned Powell’s leadership and the Federal Reserve’s policy decisions, especially regarding interest rate management and the renovation expenditures. These developments have heightened market volatility and intensified speculation about Powell’s future as Fed Chair, with political allies of Trump calling for investigations and potential removal. Despite the mounting pressure, Powell maintains he intends to complete his term, which runs through May 2026.