Fed Investigation Clears Officials, Contradicts Trump Claims

The Federal Reserve's inspector general released a report on its investigation into the central bank's renovation project, finding no evidence of wrongdoing. The investigation was sparked by President Donald Trump's claims that the project had crossed legal lines.

However, the report did criticize the Fed board for ineffective management and execution of the 'construction manager at risk' contract, which led to repeated deviations from cost-management provisions.

The inspector general presented seven recommendations to address these concerns. In response, the General Services Administration will take over as project executive, effective immediately.

This development comes after a highly publicized and contentious investigation by the Justice Department into then-Fed Chair Jerome Powell, which was sparked by Trump's claims of misconduct. The investigation was ultimately closed after a federal judge quashed the DOJ's subpoenas targeting Powell.