Storm clouds over Jerome Powell have now erupted into a full-blown political tempest. The head of the Federal Reserve is no longer merely under scrutiny — he is at the center of a formal criminal investigation.

US Representative Anna Paulina Luna has formally filed allegations with the Department of Justice, targeting Powell with documents that could trigger a criminal inquiry. The charges accuse the Fed chief of misleading Congress about a taxpayer-funded renovation project.

The Florida Republican alleges that Powell made false statements in late June 2025. "Chairman Powell knowingly misled both Congress and executive branch officials about the true nature of a taxpayer-funded project," Luna said earlier.

In a letter to the US Attorney General, Luna cited two specific statements she deemed false. First, Powell denied the existence of a VIP dining room, new marble, special elevators, rooftop gardens, and water features as part of the building's renovation. According to Luna, the final submission to the National Capital Planning Commission contradicts these assertions.

In addition, Luna challenged Powell's claim that the Eccles Building had never undergone significant renovations. She pointed out that between 1999 and 2003, the Fed carried out a major overhaul, including roof replacement, system upgrades, interior refurbishments, and courtyard redesigns.

Despite the launch of a criminal investigation, betting markets see little chance of Powell being removed from office. Currently, the odds of such an outcome are just 20%. Analysts and traders broadly expect the Fed chair to remain in his position through 2025.