{
  "id": 11005151,
  "title": "Federal Reserve watchdog finds no criminal violations for building renovation cost overruns",
  "url": "https://urgent.news/2026/09/30/federal-reserve-watchdog-finds-no-criminal-violations-for-building-11005151",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-30T17:49:27.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/sep/30/federal-reserve-watchdog-building-renovation"
  },
  "original_language": "en",
  "account": "The Federal Reserve's internal watchdog has concluded that the agency did not engage in any criminal violations during the $2.4 billion renovation of its Washington DC headquarters. According to a report released on Wednesday, the Fed's board of governors has failed to effectively manage the construction project and repeatedly strayed from its cost-management provisions. However, the watchdog found no evidence of administrative misconduct. Over the course of the renovation, construction costs increased from an initial budget of $921 million in February 2020 to $2.018 billion by December 2024, with completion now expected in December 2027 instead of the originally planned mid-2024 timeline. The renovations have been a point of contention between the White House and the Fed, which is legally required to remain nonpartisan and independent. Former President Donald Trump has been attempting to pressure then-Fed chair Jerome Powell to lower interest rates, utilizing the renovations as a means to criticize Powell. In June 2025, Trump claimed the renovations included luxurious features like a VIP dining room and garden terrace. In response, the Fed released a video tour of the ongoing construction, emphasizing that two buildings in Washington D.C. had not been renovated since the 1930s. During a visit to the headquarters, Trump and Powell engaged in an argument over budget figures, with Trump claiming the project had ballooned to $3.1 billion, which Powell denied having heard. Following this, Trump turned his focus to Fed Governor Lisa Cook, attempting to remove her from her position over alleged mortgage fraud. The Supreme Court later ruled the firing unconstitutional due to improper procedure. In January, Fed chair Powell announced the Department of Justice was investigating the renovations as part of a criminal probe, claiming it was a pretext for the Fed not lowering interest rates. The investigation ended in April when it was deemed pretextual. Despite the investigation, Trump and his economic advisers continue to call for the Fed to lower interest rates, even as the last rate hike was announced in light of high inflation.",
  "summary": "Trump criticized $2.4bn rehab amid attempts to pressure then Fed chair Jerome Powell into lowering interest rates An internal watchdog said the Federal Reserve mismanaged costs associated with a $2.4bn renovation of its Washington DC headquarters, but noted that no criminal violations occurred, according to a report released Wednesday. For over a year, Donald Trump has centered his attacks…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "The Guardian US",
        "title": "Federal Reserve watchdog finds no criminal violations for building renovation cost overruns",
        "url": "https://urgent.news/2026/09/30/federal-reserve-watchdog-finds-no-criminal-violations-for-building",
        "published": "2026-09-30T17:49:27.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}