Fed watchdog finds no laws broken in $2.5 billion Fed renovation
Summary
The Federal Reserve's inspector general found no criminal law violations in the $2.5 billion renovation of the Fed’s headquarters, despite poor project management raising costs. The investigation, requested by Federal Reserve Chair Jerome Powell and lasting over a year, also cleared Powell of any wrongdoing related to his testimony about the project.Key Facts
- The renovation of the Federal Reserve headquarters cost $2.5 billion.
- The inspector general found no criminal violations but noted poor management increased costs.
- The report did not find any administrative misconduct during the renovation.
- The probe began in July 2025 at Jerome Powell’s request.
- A separate Justice Department criminal investigation related to Powell’s testimony was later dropped.
- U.S. District Court ruled subpoenas aimed at Powell were a pretext to pressure him about interest rates.
- President Trump nominated Kevin Warsh to replace Powell as Fed chair.
- The report identified four main reasons for cost increases, including lack of cost estimates and weak project oversight.
- Inflation also contributed to the rising renovation costs.
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