Fed watchdog finds no wrongdoing in Powell’s renovation project

The Federal Reserve's Inspector General concluded on Wednesday that there is no evidence of criminal activity or administrative misconduct connected to the cost overruns in a central bank renovation project, according to the report. The investigation was triggered by criticism from President Donald Trump and an inquiry into former Federal Reserve Chair Jerome Powell.

The project, which aimed to renovate the central bank's two historic buildings on the National Mall in Washington, experienced significant cost overruns, totaling approximately $1 billion, and is now estimated to cost around $2.4 billion. President Trump had targeted the cost overrun in his campaign against Powell and his efforts to influence monetary policy.

The Inspector General's report confirmed that no reasonable grounds were found for a violation of federal criminal law during the evaluation. While the report detailed management deficiencies and suggested corrective actions, it did not identify any administrative misconduct. Fed Chairman Kevin Warsh, who succeeded Powell in May, pledged to adhere to the Inspector General's recommendations regarding project management and to engage an independent auditor to confirm the accuracy and compliance of all costs awarded to date.