Trump Attacks Powell After Report Clears Him of Wrongdoing in Fed Renovation Scandal

A report by the Federal Reserve's inspector general has found no evidence that former Chair Jerome Powell broke any laws or committed misconduct in his management of the central bank's headquarters renovation. The $2.4 billion project, which had its initial cost estimated at around $1.2 billion, was criticized for excessive spending and mismanagement.

The report concluded that while Powell did not commit any crimes, the Fed's board could have better controlled costs and mitigated some of the significant construction cost increases. The inspector general recommended seven corrective actions, including an audit of the project and a search within existing contracts for costs that might be recouped.

Fed Chairman Kevin Warsh concurred with the report's findings and agreed to implement all of the recommended corrections. He also disclosed that he had asked the Government Services Administration to examine the project and help oversee its completion.

President Donald Trump, who has long been critical of Powell and the Fed, responded to the report by renewing his calls for Powell to resign. Trump accused Powell of corruption or incompetence, saying that if he doesn't step down, he should be sued 'at the highest level' by the US government.