The inspector general’s investigation into the Federal Reserve’s costly renovation project determined that there was no administrative misconduct after the cost overruns prompted an investigation of former Federal Reserve Chair Jerome Powell amid criticism from President Donald Trump.
The Office of Inspector General for the Federal Reserve’s Board of Governors began investigating the cost overruns at Powell’s request in July 2025. Powell, then the Fed chair, disclosed in January that the Department of Justice opened a criminal probe into his June 2025 testimony before Congress about the renovation project. The U.S. Attorney’s Office closed the investigation in April as the inspector general continued its probe into the matter.
“At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred requiring a referral to the U.S. Attorney General in accordance with the Inspector General Act,” the IG report states.
“Further, while our report outlines deficiencies in the management of the renovation project, resulting in our recommended corrective actions in accordance with the Inspector General Act, we did not identify administrative misconduct during our evaluation,” the report added.
POWELL SAYS HE’LL STAY ON FED BOARD AFTER CHAIRMANSHIP ENDS BUT WON’T BE A ‘SHADOW FED CHAIR’
President Donald Trump repeatedly criticized Powell over the project last year, accusing him of “gross incompetence” and threatening to sue the Fed leader at the time. The president also said he was considering firing Powell over the project and urged him to resign, while also calling on the central bank to cut interest rates.
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