Jerome Powell hit with a criminal referral over Fed's $2.5B renovation project — what it might mean for your nest egg

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Federal Reserve Chair Jerome Powell faces a criminal referral from Republican Congresswoman Anna Paulina Luna — the latest escalation in GOP scrutiny of the central bank's spending and leadership.
On July 19, Luna sent a letter to Attorney General Pam Bondi urging the Department of Justice to investigate Powell for potential perjury and making false statements to federal officials.
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The referral centers on Powell's June 25 statements under oath before the Senate Committee on Banking, where he addressed the $2.5 billion renovation of the Fed's historic Eccles Building. In a news release, Luna claims he 'knowingly misled' officials about the nature of the project during testimony, in which he 'denied the inclusion of luxury features.'
'[Powell] stated: 'There's no VIP dining room, there's no new marble … there are no special elevators, just old elevators that have been there; there are no new water features, there's no beehives and there's no roof terrace gardens,'' she wrote in the letter.
But according to Luna, his statement doesn't match up with filed documents. Citing the Federal Reserve's final submission to the National Capital Planning Commission, she said nearly all of Powell's denials — aside from the beehives — are contradicted by actual renovation plans.
She also pointed in the letter to Powell's statement that the building 'never had' a serious renovation, despite a previous project from 1999 to 2003.
If Powell knowingly misrepresented the facts, Luna argues, his actions may constitute perjury or materially false statements under federal law.
According to Fox News, trade outlet Mortgage Professional reported that Powell has denied all allegations of perjury and has called for a formal watchdog investigation into the Eccles Building's renovation costs.
Trump, Powell and the fate of your heard-earned dollar
There's been growing tension between President Donald Trump and Powell based on a fundamental disagreement over interest rates. Trump has repeatedly criticized Powell — calling him names like 'numbskull,' 'Mr. Too Late' and a 'major loser' — for the Fed's decision to keep its benchmark rate in the 4.25% to 4.50% range throughout the year. Trump insists rates should be as much as three percentage points lower to help the economy
Trump has said he isn't planning on firing Powell, but also hasn't ruled out the possibility. Powell's term as Fed chair runs through May 2026, and he has said he does not intend to leave early.
While uncertainty lingers around Powell's future, it's worth remembering the core purpose of the Fed. As the nation's central bank, it operates under a dual mandate: to pursue maximum employment and maintain price stability.
In a statement released June 18, the Federal Open Market Committee noted that unemployment remains low and labor market conditions are solid — but inflation 'remains somewhat elevated.'
That may explain why the Fed isn't cutting rates. While lower interest rates — the kind Trump has called for — could boost economic activity, they also risk reigniting inflation. And the 40-year high inflation rate Americans endured in 2022 is still fresh in the rearview mirror.
The good news? Savvy investors have long relied on certain assets to shield their wealth from inflation's bite — no matter who's running the Fed.
A safe haven shines again
Gold has helped people preserve their wealth for thousands of years. Today, its appeal is simple: unlike fiat currencies, the yellow metal can't be printed at will by central banks.
It's also widely regarded as the ultimate safe haven. Gold is not tied to any one country, currency or economy, and in times of economic turmoil or geopolitical uncertainty, investors often flock to it — driving prices higher.
Over the past 12 months, the price of the precious metal has surged about 40%.
Ray Dalio, founder of the world's largest hedge fund, Bridgewater Associates, has repeatedly emphasized gold's importance in a resilient portfolio.
'People don't have, typically, an adequate amount of gold in their portfolio,' he told CNBC earlier this year. 'When bad times come, gold is a very effective diversifier.'
One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold, making it an option for those looking to help shield their retirement funds against economic uncertainties.
When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals for free.
Read more: Rich, young Americans are ditching the stormy stock market —
A time-tested income play
Gold isn't the only asset investors rely on to preserve their purchasing power. Real estate has also proven to be a powerful hedge.
When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that can adjust for inflation.
Over the past five years, the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index has jumped by more than 50%, reflecting strong demand and a limited housing supply.
Of course, high home prices can make buying a home more challenging, especially as mortgage rates remain elevated. And being a landlord isn't exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don't need to buy a property outright — or deal with leaky faucets — to invest in real estate today. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.
Backed by world class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.
The process is simple: browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you'd like to purchase, and then sit back as you start receiving any positive rental income distributions from your investment.
Another option is First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.