Fed watchdog finds renovation failures, but no grounds for criminal referral
The long-awaited report by the Fed's inspector general said it found no reasonable grounds to believe federal criminal law had been violated.
The Federal Reserve's inspector general has released a report on the renovation of the Fed's headquarters, which was criticized by President Trump. The report found that poor project management led to a significant increase in costs.
The inspector general's office concluded that there were deficiencies in the management of the renovation project, but did not find reasonable grounds to believe that a violation of federal criminal law had occurred. As a result, no referral was made to the U.S. Attorney General.
The investigation, which lasted over a year, was requested by then-Federal Reserve Chairman Jerome Powell and began in July 2025, according to CBS News. A separate Justice Department probe was announced in January, with the Fed receiving grand jury subpoenas as part of an ongoing criminal investigation.
Brief written by urgent.news from CNBC, CBS News — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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- Fed watchdog finds no laws broken in $2.5 billion Fed renovation cbsnews.com
- Fed watchdog clears former chair Powell in renovation probe axios.com
- Fed watchdog finds no wrongdoing in Powell’s renovation project investing.com
- Fed watchdog finds no criminality in renovation probe thehill.com
- Fed watchdog finds renovation failures, but no grounds for criminal referral cnbc.com
- 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
