Fed Watchdog Clears Powell in $2.5 Billion Renovation Probe
A recent report from the Federal Reserve's internal watchdog has cleared Jerome Powell of any criminal misconduct related to a $2.5 billion renovation project at the Fed's headquarters.
The report, which spans 120 pages, found that while poor project management may have contributed to the significant cost overruns, there was no evidence to suggest that federal law had been violated.
Powell has faced scrutiny from President Donald Trump, who has repeatedly called for his resignation and even threatened a lawsuit. The Department of Justice launched an investigation into the matter in 2026 but eventually dropped it after Senator Thom Tillis cited it as a reason for withholding his support for Kevin Warsh's confirmation to replace Powell as Fed leader.
Trump reacted to the watchdog's findings by saying he would ask Attorney General Todd Blanche to review the report and determine what action should be taken. He also reiterated that Powell should resign due to his handling of the renovation project and the central bank's interest rate policy.