Fed Watchdog Clears Powell in HQ Renovation Probe

The Federal Reserve's inspector general has cleared former Fed Chair Jerome Powell of any wrongdoing in connection with a multibillion-dollar renovation project at the central bank's headquarters.

The report, which was released on Wednesday, concluded that the project did not violate federal law and that Powell's private elevator, extensive marble, garden terrace, and skylights did not contribute to the $2.5 billion price tag.

However, the inspector general did find serious management failures, including a lack of construction cost estimates and insufficient internal oversight.

The project's estimated cost has grown from $1.9 billion to nearly $2.5 billion, with inflation cited as one of the main causes of the rising costs.

Inspector General Michael Horowitz made seven recommendations for improving management practices at the Fed, which have been accepted by current Fed Chair Kevin Warsh.