Fed Renovation Probe Clears Way for Powell to Remain at Helm

The Federal Reserve's inspector general has found no evidence of misconduct by the central bank in its massive headquarters renovation project.

The investigation, which was sparked by a Justice Department probe, found that the Fed should have done more to rein in the project's cost, which has ballooned to an estimated $2.38 billion, more than $1 billion over a 2020 projection.

However, the watchdog report concluded that there were no 'reasonable grounds to believe that a violation of criminal law had occurred,' nor was there misconduct by the Fed board.

The findings are critical for the future of the Federal Reserve, which has faced intense scrutiny from President Donald Trump over its management of interest rates and other issues.