US Fed watchdog finds no criminal wrongdoing in Powell-era renovation costs
Summary
The Federal Reserve’s watchdog found no evidence of criminal activity in a costly renovation of two Fed buildings in Washington, DC. The project went about $1 billion over budget, but no laws were broken, and no administrative misconduct was found.Key Facts
- The renovation project cost about $2.4 billion, roughly $1 billion over the original budget.
- The inspector general found no reason to refer the case for criminal investigation.
- President Trump had used the renovation costs to criticize then-Fed Chair Jerome Powell.
- Trump pressured Powell to lower interest rates during his time as Fed Chair.
- A Department of Justice investigation into the renovation and Powell’s testimony was closed earlier in 2024.
- The watchdog report said the Fed poorly managed the project and failed to set a guaranteed maximum price to control costs.
- Some design elements, like marble and water features, were blamed for overruns but did not significantly add to the cost.
- Cost overruns on government projects are common, including Trump’s own White House ballroom renovation.
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