Fed Chairman Powell has recently gotten himself into some trouble. Florida Republican Congresswoman Anna Paulina Luna, an ally of Trump, has officially submitted criminal charges to the U.S. Department of Justice, claiming that Powell did not tell the truth while testifying in Congress. According to U.S. law, if this is substantiated, he could face up to five years in prison and fines.

The origin of this matter is the renovation project of the Eccles Building of the Fed. Luna stated in the allegations that when Powell testified before the relevant Senate committee on June 25 this year, there were two inaccuracies: first, the claim about the renovation costs was untrue, and second, he deliberately concealed the luxurious features within the building.

Specifically, the renovation budget for this building has increased from 1.9 billion to 2.5 billion, and when Powell wrote to an official at the White House, he actually referred to it as a "small adjustment." However, Congress reviewed the documents and found that the project has significantly exceeded both its scale and spending. More importantly, Luna stated that the revised renovation plan includes items such as a VIP private dining room, high-end marble finishes, new elevators, water features, and a rooftop garden, which Powell had previously publicly stated did not exist—these features were clearly included in the plan. He also claimed that the cost increase was to simplify construction and avoid delaying progress, which contradicts the plan submitted to the relevant departments.

Actually, Luna had already hinted on social media platform X last week that they were going to sue Powell. In response to the allegations, Powell denied them and ordered a formal investigation into the renovation costs. The Fed's official website also posted videos and planning details about the renovations. Fox News wanted to ask the Fed for clarification, but has not received a response yet.

There are also some political undertones involved. Luna previously guessed on X that Trump would quickly fire Powell, but that didn't come true. Recently, Trump has been complaining that Powell hasn't lowered interest rates as he said, but he also told reporters that "the possibility of firing is very low."

But moderate Republicans and supporters of Powell have warned that hastily replacing the Fed chairman could create greater market turmoil.

There is currently no conclusion on this matter, and we will have to wait and see what happens next.