Fed’s Powell Defies Criminal Referral—Won’t Step Down ’Other Than Dying’

Jerome Powell digs in like a Bitcoin maximalist during a bear market—no exit strategy in sight. The Fed chair just signaled he'll cling to power tighter than a crypto bro to his cold wallet, even as legal pressure mounts.

No Voluntarily Departure Here

Powell's playing regulatory chicken with Congress. When lawmakers threatened a criminal referral over alleged monetary policy misconduct, he basically responded with a middle finger emoji. Classic central banker move—when in doubt, double down on opacity.

Defiance as Policy

This isn't leadership—it's a high-stakes game of 'not it.' Powell's betting his institutional knowledge makes him too big to fail, just like those 'systemically important' banks the Fed keeps bailing out. Meanwhile, the dollar's becoming more volatile than an altcoin.

One thing's clear: the only thing leaving the Fed faster than monetary restraint is Congress's patience. Place your bets on who blinks first—we're taking odds in both fiat and BTC.

Powell faces criminal referral over renovation testimony

Now in 2025, Powell is facing heat again, this time not just from Trump, but from the entire Capitol Hill. On Thursday, Chairman of the Board of Fannie Mae and Freddie Mac, Bill Pulte, posted on X that Powell could be criminally referred to the Justice Department for alleged perjury.

“I am told by very reliable Congressional sources that there may be a criminal referral coming from one or more Congress members to the DOJ for Jay Powell’s alleged perjury about the $2.5BN building,” Pulte wrote.

Just an hour later, Republican Representative Anna Paulina Luna did exactly that. She formally referred Powell to the DOJ, accusing him of misleading Congress about the Federal Reserve’s $2.5 billion headquarters renovation in Washington, D.C.

Powell had testified during last month’s Senate Banking Committee hearing that the cost overruns were due to unavoidable construction challenges and inflation. Lawmakers weren’t buying it, with some describing the project as excessive.

CNN reported that Powell had asked the Fed’s inspector general to carry out an additional review of the building project, which was originally approved by the Fed’s board in 2017 with a price tag of $1.9 billion.

Construction began in 2021, but the cost ROSE to $2.5 billion due to what Powell described as “unforeseen conditions.” These included “more asbestos than anticipated,” “toxic contamination in soil,” and a “higher-than-expected water table,” as outlined on the Fed’s official website.

Trump says Powell’s building scandal might justify firing

During the Senate hearing, Powell told lawmakers, “There’s no new marble. There’s no special elevators. They’re old elevators that have been there. There are no new water features. There’s no beehives and there’s no roof garden terraces.”

He said the money wasn’t being wasted on luxury features and clarified that taxpayers weren’t paying for the project. “The Fed is funding the renovation,” Powell said, confirming the estimated final cost at approximately $2.5 billion.

Despite all the legal insulation Powell believes he has, Trump has said that the renovation saga might be enough grounds to fire Powell “for fraud,” though he added it was “highly unlikely.” Even so, the comment adds to the mounting political scrutiny Powell is now dealing with.

So while Powell has never budged in the face of political threats and once claimed only death would stop him from serving his full term, Congress and Trump may both test how far that commitment really goes. But as of now, Powell hasn’t even taken the bait to clap back publicly.

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