Watchdog Clears Former Fed Chair Powell Over Cost Overrun Probe

A government watchdog has cleared former US Federal Reserve Chairman Jerome Powell of any wrongdoing in connection with cost overruns on a major renovation project at the Fed's Washington headquarters. The Office of the Inspector General (OIG) found no evidence to support criminal charges, despite a probe initiated by President Trump's Department of Justice in January.

The investigation centered around a building renovation project whose estimated costs grew from $1.3 billion in February 2020 to $2.4 billion in December 2024. The OIG report identified management deficiencies but no administrative misconduct during its evaluation.

Fed Chair Kevin Warsh has pledged to implement the OIG's recommendations, including the appointment of an independent body to oversee costs and construction schedules, as well as an audit of the project.