Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The watchdog said poor project management drove major overruns and issued seven recommendations after reviewing interviews with board officials, staff and contractors.
- On Wednesday, the Federal Reserve's independent watchdog reported no criminal violations in the multibillion-dollar renovation of the Federal Reserve headquarters, clearing the project of allegations pressed by President Donald Trump.
- U.S. Attorney Jeanine Pirro issued subpoenas to the Federal Reserve Board in January 2026, seeking information about cost overruns as the Trump administration pressured former Chair Jerome Powell regarding his Senate testimony on the renovation.
- Costs for the two-building renovation surged from an initial $921 million estimate in February 2020 to $2.018 billion by December 2024, with the inspector general citing insufficient governance and the board's failure to establish a guaranteed maximum price.
- Fed Chair Kevin Warsh pledged to follow the inspector general's recommendations and hire an independent auditor to verify costs, while the General Services Administration will assume management of the remaining renovation work.
- The institution aims to complete the renovation by December 2027 as the Fed maintains focus on independent monetary policy, resolving questions raised by the Trump administration's pressure on the central bank's leadership.
24 Articles
24 Articles
Federal Reserve watchdog finds no illegal conduct from Jay Powell in building renovations
The Federal Reserve’s watchdog found that the institution did not “effectively manage” its renovations of the central bank’s headquarters in Washington D.C., but found no grounds for a criminal probe into former Federal Reserve chairman Jerome Powell on the matter. “Our review found that the Board has not effectively managed and executed its CMAR contract […]
Watchdog finds deficiencies but no Fed misconduct in Powell-era renovation project
The Federal Reserve's Inspector General on Wednesday said it found no grounds for a criminal referral or administrative misconduct tied to cost overruns in a US central bank renovation project that had drawn scorn from President Donald Trump and an investigation of former Fed chief Jerome Powell.
Fed Watchdog Finds No Laws Broken in Renovations
“The Federal Reserve’s inspector general announced Wednesday that the multibillion-dollar renovations of the Fed’s headquarters criticized by President Trump as ‘disgraceful’ did not violate federal law, though the office concluded poor project management dramatically increased the cost,” CBS News reports. NBC News: Watchdog finds no criminality in Fed renovation that drew Trump’s scrutiny.
Watchdog finds no evidence of misconduct by Fed in HQ ...
No criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged – WTOP News
WASHINGTON (AP) — The Federal Reserve’s internal watchdog said Wednesday that the agency has broadly mismanaged an expansive building renovation project but did not find any criminal violations, as alleged by Trump administration prosecutors. The Fed’s inspector general said that a variety of missteps by its Board of Governors inflated the cost of the $2.4...
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