Fed Inspector General Finds Management Failures but No Criminal Misconduct in Headquarters Renovation
The Federal Reserve's inspector general found that management and oversight failures contributed to significant cost overruns during the renovation of its Washington, D.C., headquarters. However, it concluded there was no reasonable grounds for criminal referral or evidence of federal law violations requiring action by the attorney general. This report comes amid scrutiny from President Donald Trump and others who accused former Fed Chair Jerome Powell of mismanagement related to the project. The watchdog did not find any misconduct in Powell's 2025 Senate testimony about the renovation, though it reviewed materials connected to his statements. The findings may reduce pressure on Powell while allowing the central bank to implement recommendations from the report. The Federal Reserve board was reportedly not involved in day-to-day decisions for the project and had delegated such responsibilities as expected with large construction efforts.
Topics: cost overruns Federal Reserve Inspector General report management failures