- Federal Reserve renovations were initially budgeted at $921 million, but costs more than doubled to $2.018 billion.
- The US Justice Department opened an investigation into Jerome Powell in January regarding his congressional testimony about the renovations.
- The investigation concluded without charges in April.
- The inspector general's report released on Wednesday found no criminal wrongdoing or administrative misconduct.
- Trump called for Powell's immediate resignation on Truth Social, stating he should be forced to resign immediately.
- Powell's term as chair ended in mid-May, but he remains on the Fed board as a governor.
- A US watchdog found the Federal Reserve mismanaged costs associated with renovations but found no grounds for a criminal referral.
- The renovations were a focal point of tensions between US President Donald Trump and former Fed chair Jerome Powell.
- "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," stated the inspector general.
The Federal Reserve's inspector general has cleared Jerome Powell of any criminal wrongdoing related to the mismanagement of renovation costs at the Fed's headquarters, which ballooned from $921 million to $2.018 billion. The audit revealed significant shortcomings in project management but concluded that there were no grounds for a criminal referral.1248
The inspector general stated, "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." This investigation followed a probe by the US Justice Department that began in January and concluded without charges in April.3
Despite the findings, President Donald Trump has publicly demanded Powell's resignation, asserting that his management of the renovation reflects broader incompetence. Trump stated on Truth Social, "He can't manage a Building, and he certainly shouldn't be allowed to manage his High Interest Rate Policy. This is Jerome Powell's fault, and he should be forced to resign, IMMEDIATELY!" Powell's term as chair ended in mid-May, but he continues to serve as a governor on the Fed board.56
The tensions surrounding the renovations have highlighted the contentious relationship between Trump and Powell, particularly regarding monetary policy and interest rates, which have been a focal point of criticism from the former president.
“The report found construction costs more than doubled from $921 million to $2.018 billion, and the Justice Department's investigation into Powell ended without charges in April. Trump's social media post demanded Powell be forced to resign, though Powell remains on the Fed board as a governor.”
