Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The watchdog said poor project management drove major overruns and issued seven recommendations after reviewing interviews with board officials, staff and contractors.
- On Wednesday, the Federal Reserve's independent watchdog reported no criminal violations in the multibillion-dollar renovation of the Federal Reserve headquarters, clearing the project of allegations pressed by President Donald Trump.
- U.S. Attorney Jeanine Pirro issued subpoenas to the Federal Reserve Board in January 2026, seeking information about cost overruns as the Trump administration pressured former Chair Jerome Powell regarding his Senate testimony on the renovation.
- Costs for the two-building renovation surged from an initial $921 million estimate in February 2020 to $2.018 billion by December 2024, with the inspector general citing insufficient governance and the board's failure to establish a guaranteed maximum price.
- Fed Chair Kevin Warsh pledged to follow the inspector general's recommendations and hire an independent auditor to verify costs, while the General Services Administration will assume management of the remaining renovation work.
- The institution aims to complete the renovation by December 2027 as the Fed maintains focus on independent monetary policy, resolving questions raised by the Trump administration's pressure on the central bank's leadership.
40 Articles
40 Articles
The Inspector General of the Federal Reserve (Fed) informed on Wednesday (30) that he found no reason to refer to Justice or point out administrative irregularities related to costs in a reform project of the American central bank that had been the subject of criticism by President Donald Trump and an investigation about the former president of the Fed Jerome Powell. The Fed's supervisory body, however, highlighted extensive problems in the supe…
Watchdog eviscerates Trump's claim that nemesis botched massive project
The Federal Reserve's inspector general concluded Wednesday that the multibillion-dollar renovation of the central bank's headquarters did not violate federal law.The project had been attacked by President Donald Trump and his allies, and it was the basis for a criminal investigation of former Fed Chair Jerome Powell, and the inspector general also reviewed Powell's June 2025 testimony to the Senate Banking Committee about the project and found …
The General Inspection of the U.S. Federal Reserve (Fed) did not find "reasonable grounds" for criminal proceedings concerning the management of the renovation site of the institution's headquarters in Washington, D.C., according to a report posted on Wednesday.
Federal Reserve watchdog finds no illegal conduct from Jay Powell in building renovations
The Federal Reserve’s watchdog found that the institution did not “effectively manage” its renovations of the central bank’s headquarters in Washington D.C., but found no grounds for a criminal probe into former Federal Reserve chairman Jerome Powell on the matter. “Our review found that the Board has not effectively managed and executed its CMAR contract […]
Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The Federal Reserve's Inspector General on Wednesday said it found no grounds for a criminal referral or administrative misconduct tied to cost overruns in a US central bank renovation project that had drawn scorn from President Donald Trump and an investigation of former Fed chief Jerome Powell.
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