Fed Watchdog Clears Former Chair Powell in $2.4B Renovation Probe

The Federal Reserve's internal watchdog has released a report on the $2.4 billion building renovation project, finding no evidence of criminal activity but significant mismanagement by the central bank.

The inspector general's investigation, sparked by Trump administration prosecutors, found that the Fed's Board of Governors and staff failed to secure a comprehensive cost estimate at the beginning of the project, allowing prices to spike after construction began in 2022.

The report cited a design change by the Fed in 2023 from an open workspace to one with mostly closed office space as a significant factor in the project's delays and cost overruns.

Current Fed Chairman Kevin Warsh welcomed the IG's findings, stating that the General Services Administration would take on a consulting role to help oversee the project, and that the Fed would engage an independent auditor to evaluate the building project and all its costs.