DOJ Drops Powell Probe as Fed Hands Renovation Reins to GSA
The Department of Justice (DOJ) has declined to reopen its investigation into former Federal Reserve Chair Jerome Powell regarding cost overruns during the central bank's headquarters renovation. The project, which started in 2020, saw costs rise from $1.317 billion to $2.381 billion by 2024.
A Fed inspector general report found major oversight failures but no evidence of criminal misconduct in the project. Federal prosecutors previously issued grand jury subpoenas regarding the renovation project, but a federal judge quashed them in March after determining the government produced no evidence of criminal wrongdoing by Powell.
Current Fed Chair Kevin Warsh has announced that the General Services Administration (GSA) will take over direct management of the ongoing construction to institute stricter budget controls and prevent further completion delays. The central bank aims to establish a guaranteed maximum price and stricter metrics to ensure the remaining renovation work finishes by its revised late 2027 timeline.