Fed Renovation Project Cleared of Wrongdoing After Trump Criticism
The Federal Reserve's independent watchdog has released a report on a multibillion-dollar renovation project that drew criticism from President Donald Trump. The Office of the Inspector General found no reasonable grounds to believe there was a violation of federal law in the project.
However, the watchdog did find that the central bank's board had not effectively executed its contract and cost-management provisions. The report noted that the project's cost overruns resulted from factors such as inflation, limited subcontractor bidding, and changes to the design after construction began.
The inspector general also highlighted ineffective project management as a key factor in the project's prolonged duration and increased costs.
Trump responded to the report by blaming former Fed chair Jerome Powell for the cost overruns. Trump wrote on Truth Social that Powell should be forced to resign or sued for corruption or incompetence.