Fed Investigation Clears Powell of Wrongdoing in HQ Renovation Project

A year-long investigation into the Federal Reserve's headquarters renovation project has concluded that then-Chair Jerome Powell did not break any laws or commit misconduct in his management of the costly project. The report, released by the Fed's inspector general on Wednesday, found no evidence of a violation of federal criminal law and identified only minor lapses in the central bank's oversight.

The investigation, sparked by criticism from President Donald Trump, who had accused Powell of being criminally negligent in his oversight of the renovations, followed a year-long review of the project. The report found that the Fed's board had allowed the price tag to balloon beyond $2 billion, with the current budget standing at roughly $2.4 billion.

While the inspector general's report did not find any evidence of wrongdoing by Powell or individual board governors, it criticized the Fed's management of the project, saying they 'could have better controlled costs and mitigated some of the significant construction cost increases.' The report also recommended that the Fed take seven corrective actions, including launching an audit of the project and a search within its existing contracts for costs that might be recouped.