Fed watchdog clears former chair Powell in renovation probe
Summary
A Federal Reserve watchdog found no criminal wrongdoing by former Fed Chair Jerome Powell in the investigation of the central bank’s costly headquarters renovation. However, the watchdog criticized the Fed’s management for poor oversight, which led to construction costs doubling to $2.5 billion.Key Facts
- The Federal Reserve’s Office of Inspector General found no evidence of criminal law violations by Jerome Powell.
- The Justice Department had previously opened a criminal investigation into Powell related to the renovation costs.
- The report found no administrative misconduct by Powell during the investigation.
- Construction costs for the Fed’s headquarters renovation increased from $1 billion to $2.5 billion.
- The watchdog said Fed management did not take steps that might have controlled or reduced cost increases.
- Two major contracts for mechanical, electrical, and plumbing work tripled from $178 million to $539 million, beyond normal inflation.
- President Trump publicly criticized Powell over the renovation’s high costs in 2025.
- Powell stayed on the Fed’s board after his chair term ended in May to oversee the investigation’s conclusion.
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