Fed watchdog finds no laws broken in $2.5 billion Fed renovation
The Federal Reserve inspector general also did not find fault with features the White House had complained were "ostentatious" and not compliant with the approved plans.
The Federal Reserve's inspector general concluded on Wednesday that multi-billion dollar renovations of the central bank's headquarters did not violate any federal laws, despite criticism from President Trump. The IG's 120-page report found that poor project management drove the costs far beyond the estimated $1.9 billion. However, the office did not detect any criminal wrongdoing, including by then-Fed Chair Jerome Powell, who was under scrutiny for a testimony about the project in June 2025.
The report revealed management deficiencies, lack of cost estimate, and insufficient internal project governance as key factors behind the cost overruns. Powell's testimony was called deceptive by Bill Pulte, who urged Congress to investigate. However, investigations by the Justice Department and D.C. U.S. Attorney Jeanine Pirro were quashed, allowing Kevin Warsh to succeed Powell as Fed chair in April 2026.
Warsh has taken over the project oversight, with the Fed planning a full audit to assess any unmet services.
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- Fed watchdog finds ‘deficiencies’ but no criminal wrongdoing in $2.5bn renovation ft.com
- US Fed watchdog finds no criminal wrongdoing in Powell-era renovation costs aljazeera.com
- Fed watchdog found no crimes in $2 billion headquarters renovation cost overruns qz.com