Fed Watchdog Clears Powell of Misconduct, but Trump Presses for Resignation
A report from the Federal Reserve's Inspector General found no evidence of misconduct by Jerome Powell, the former Fed chief, in connection with cost overruns on a renovation project. However, it did highlight problems with oversight that contributed to a roughly $1 billion cost overrun for the renovation of the central bank's two historic buildings.
The report noted that 'at no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred requiring a referral to the US attorney general.' Powell declined to comment on the report, which is the latest chapter in an ongoing feud with President Donald Trump.
Trump had latched onto the cost overrun as a way to engineer Powell's ouster and gain influence over monetary policy. The IG's report added to pressure on Powell to resign, but some lawmakers defended him, saying there was no basis for restarting the president's 'witch hunt.'