**Title: US Fed Watchdog Clears Powell of Criminal Wrongdoing in Renovation Costs**
**Date: September 30, 2026**
The Federal Reserve's inspector general has concluded that there is no evidence of criminal wrongdoing or administrative misconduct related to a controversial renovation project that has been a point of contention during Jerome Powell's tenure as chair of the Federal Reserve. The findings were released on Wednesday, following an investigation into the renovation of two significant Federal Reserve buildings in Washington, D.C.
The renovation project, which has been criticized for its escalating costs, is now estimated to be approximately $2.4 billion—about $1 billion over its original budget. The inspector general's report stated, "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 US attorney general."
The renovation costs had previously drawn the ire of former President Donald Trump, who used the expenditures as a means to criticize Powell. Throughout his presidency, Trump pressured Powell to lower interest rates, often linking his criticisms to the rising costs of the renovation project.
In addition to clearing Powell of any wrongdoing, the inspector general's report highlighted several management shortcomings within the Federal Reserve regarding the renovation. Notably, the Fed failed to establish a "guaranteed maximum price" for the project, which would have shifted the burden of cost overruns to the contractor. This oversight contributed to the significant budget increases.
The report also addressed design elements that had faced scrutiny from the White House, such as the inclusion of marble, water features, and a garden terrace. The inspector general concluded that these features "did not materially contribute" to the cost overruns, suggesting that the budget issues stemmed from broader management and planning failures rather than specific design choices.
The investigation into the renovation project was part of a larger inquiry that included a review of Powell's congressional testimony. Earlier this year, a Department of Justice investigation into the matter was closed after a federal judge sided with Powell, determining that the inquiries were a pretext for political pressure aimed at influencing the Federal Reserve's monetary policy.
Cost overruns in government projects are not uncommon, and the renovation of the Federal Reserve buildings has drawn comparisons to other high-profile projects, including the doubling of the budget for the construction of a ballroom at the White House.
As the Federal Reserve continues to navigate economic challenges, including inflation and interest rate adjustments, this report may help to alleviate some of the political pressure surrounding its leadership. The findings affirm that while management practices can be improved, the allegations of criminal misconduct were unfounded.
The inspector general's report serves as a reminder of the complexities involved in large-scale government projects and the importance of robust management practices to ensure accountability and fiscal responsibility.