Fed Inspector General Clears Powell of Wrongdoing in $2.4 Billion Renovation Project

A year-long investigation into the Federal Reserve's $2.4 billion headquarters renovation project has concluded that then-Chair Jerome Powell did not break any laws or commit misconduct, despite accusations from President Donald Trump and his allies.

The report, released by the Fed's inspector general, found no evidence of criminal wrongdoing on the part of Powell or any other individual in their management of the project. However, it did criticize the Fed's board for mismanaging the project at several points, stating that they 'could have better controlled costs and mitigated some of the significant construction cost increases.'

The report noted that the project was troubled from the beginning, with the board failing to set price caps or ensure that firms bidding on the construction submitted estimates for how much it would cost them to complete the total renovation. The Fed board also did not monitor the project's day-to-day developments closely enough.