Inspector general finds no misconduct in Federal Reserve renovations

Key Points:

• The Federal Reserve's Office of Inspector General found no administrative misconduct in the costly renovation project after investigating former Fed Chair Jerome Powell, despite significant cost overruns and prior criminal probes.
• The renovation budget for the Fed's Marriner S. Eccles and Constitution Avenue buildings ballooned from $1.317 billion in 2020 to $2.381 billion in 2024, with cost increases attributed to material prices, design changes, and unforeseen issues like asbestos and contaminated soil.
• The IG report highlighted project management flaws, including the lack of a guaranteed maximum price contract and insufficient bidding processes, but ruled out criminal violations or administrative misconduct.
• Former President Donald Trump criticized Powell sharply, calling for his resignation and accusing him of incompetence, while also disputing the project's necessity and cost, and urging the Attorney General to take action.
• Powell remains on the Fed Board despite stepping down as chair in May 2026, citing concerns over monetary policy independence amid ongoing scrutiny and political pressures.