Fed Clears Powell, Cites Oversight Failures in Renovation Saga

The Federal Reserve's internal watchdog has cleared Jerome Powell of any wrongdoing in the ongoing renovation saga at the Fed's headquarters. The Office of Inspector General (OIG) found no evidence of criminal or administrative misconduct that led to costly delays and budget overruns, which ballooned from $921 million to over $2 billion.

The 120-page report by the OIG highlighted deep oversight failures and deficiencies in project management, including a lack of formal framework for monitoring progress. The board increased the project's budget as costs escalated, creating a pay-as-you-go approach.

A federal judge previously quashed subpoenas issued to Powell over allegations he lied under oath about the cost overruns before the Senate Banking Committee. Jeanine Pirro, U.S. attorney for the District of Columbia, vowed to reopen the investigation pending the outcome of the OIG's internal audit.