Fed Renovation Cost Overruns Reach $2.5 Billion Despite No Laws Broken

The Federal Reserve's inspector general has concluded that the $2.5 billion renovation of the Fed's headquarters did not break any laws, despite President Trump calling it 'disgraceful.'

The report, released on Wednesday, found that while there were deficiencies in project management, no administrative misconduct was identified.

The investigation, which lasted over a year, was requested by then-Fed Chairman Jerome Powell and reviewed the renovation's cost increases, which surpassed the rate of inflation. The IG found that officials repeatedly pointed to inflation as the main driver of costs, but the report concluded that 'inflation was clearly a factor' but did not explain how it impacted the overall cost.

The Justice Department had previously launched a separate investigation into Powell's testimony about the project, which led to grand jury subpoenas. However, those subpoenas were later quashed by a U.S. District Court in Washington, D.C., after it was found they were a pretext to pressure Powell into voting to lower interest rates or resigning.