Fed Inspector General Clears Powell in $2.4 Billion Renovation Project

The Federal Reserve's Inspector General has released a report on a $2.4 billion renovation project of the central bank's historic buildings, which drew criticism from President Donald Trump and an investigation into former Fed chief Jerome Powell.

The IG found no evidence of administrative misconduct or criminal activity tied to cost overruns, but did highlight extensive problems with project oversight that contributed to a roughly $1 billion cost overrun.

Trump had latched onto the issue as part of his effort to engineer Powell's ouster and gain influence over monetary policy. The IG report noted that design elements like marble, water features, and a garden terrace cited by critics 'did not materially contribute' to the cost overruns.

The central bank ultimately paid $346 million for plumbing and air conditioning on the project, triple the initial estimate. Powell declined to comment on the Fed IG's report.