Fed Watchdog Clears Powell in Multimillion-Dollar Renovation Probe

The Federal Reserve's internal watchdog has cleared former Chair Jerome Powell and current officials of any wrongdoing in the central bank's ongoing multimillion-dollar renovation project.

The report, released by Fed Inspector General Michael Horowitz, acknowledged that the Fed 'has not effectively executed' the construction management risk contract for the renovations of two buildings in Washington.

However, the 121-page report found no evidence of criminality in Powell's handling of the project. The investigation centered around Powell's remarks to the Senate Banking Committee in June 2025, when he defended the rising costs of the project.