US Fed Watchdog Clears Jerome Powell of Criminal Wrongdoing in Massive Renovation Project

Federal Reserve Board Governor and former chair, Jerome Powell, speaks after receiving the 2026 John F. Kennedy Profile in Courage Award at the John F. Kennedy Presidential Library and Museum in Boston, Massachusetts.

The Federal Reserve’s inspector general has concluded there are no grounds for a criminal referral or administrative misconduct linked to a multibillion-dollar central bank renovation project in Washington, DC. The project, which became a central focus of President Donald Trump’s pressure campaign against Jerome Powell, has exceeded its initial budget by roughly $1bn, reaching an estimated cost of about $2.4bn.

The inspector general stated that the evaluation found no reasonable grounds indicating any violation of federal criminal law. President Donald Trump had previously used the soaring renovation costs to publicly attack Jerome Powell while demanding lower interest rates. A prior Department of Justice investigation into the matter was closed earlier in the year after a federal judge determined the inquiries were used as a pretext to influence monetary policy.

While clearing officials of criminal activity, the watchdog report highlighted notable management shortcomings, such as the failure to secure a guaranteed maximum price to protect against cost overruns. Investigators also noted that contested architectural features, including marble, water features, and a garden terrace, did not significantly drive up the expenses.