Fed Inspector General Clears Powell of Wrongdoing in Renovation Project

The US Federal Reserve's inspector general has cleared former Chairman Jerome Powell of any wrongdoing in connection with a costly renovation project at two Fed buildings in Washington, DC. The project, which has run roughly $1 billion over budget, is estimated to have cost around $2.4 billion.

Trump repeatedly used the renovation costs as a means to pressure Powell during his time as Fed chief. The president had consistently pushed for lower interest rates, and Trump's attacks on Powell centered around the costly project.

The inspector general found no evidence of administrative misconduct or criminal wrongdoing in its review of the project. However, it did identify significant shortcomings in the Fed's management of the project, including a failure to establish an intended 'guaranteed maximum price' that would have shifted responsibility for cost overruns to the contractor.

The report also found that design features criticized by the White House, such as marble and water features, did not contribute significantly to the cost overruns. The inspector general's findings come after a US Department of Justice investigation into the project and Powell's congressional testimony was closed earlier this year due to a federal judge's ruling that it was a pretext for pressuring the Fed chief to lower interest rates.