What happened
A report by the Federal Reserve's inspector general has found that the institution did not effectively manage its headquarters renovation project in Washington, D.C. The project, which was overseen by former Federal Reserve Chairman Jerome Powell, had significant cost overruns, with the estimated budget ballooning from $1.9 billion in 2023 to $2.5 billion by 2025.
The inspector general's report, which spanned 121 pages, concluded that there were no grounds for a criminal probe into Powell's handling of the project. The report stated that at no point during the evaluation did they find reasonable grounds to believe that a violation of federal criminal law had occurred.
The renovation project, which included the Eccles Building and 1951 Constitution Avenue, featured opulent touches such as special dining rooms and luxurious marble. Powell had faced criticism and accusations of wrongdoing from allies of President Donald Trump, who claimed that the project's cost overruns were a result of Powell's mismanagement.
The report's findings bring Powell closer to resolving the accusations against him, although Trump has continued to criticize Powell and call for his resignation. The inspector general's report also noted that the Federal Reserve Board of Governors repeatedly deviated from its cost-management provisions, contributing to the cost overruns.
The issue has been the subject of a long-standing feud between Trump and Powell, with Trump accusing Powell of wrongdoing and Powell arguing that the inquiry was an effort to influence interest rate policy. The Justice Department had previously announced that it was ending its investigation into Powell, and the inspector general's report appears to have put the matter to rest.
