Powell Cleared of Wrongdoing in Fed Renovation Project

Jerome Powell, former Chairman of the Federal Reserve, has been cleared of any administrative misconduct related to the central bank's renovation project. The investigation by the Office of Inspector General found that while there were cost overruns and mismanagement of the project, no federal criminal law had been violated.

The renovation project, which began in 2020, was initially budgeted at $1.317 billion but grew to $2.381 billion by December 2024. Critics, including President Donald Trump, accused Powell of 'gross incompetence' and threatened to sue him over the project's management.

Powell had disclosed in January that a criminal probe into his testimony before Congress about the renovation project was underway. However, the investigation was closed in April by the U.S. Attorney's Office, and the inspector general continued its probe.

The IG report acknowledged that the cost increases were caused by higher construction costs, design changes, and unforeseen issues such as asbestos contamination. The Fed attributed some of the cost overruns to not establishing a guaranteed maximum price contract and ineffective use of its outside construction representative.