The Office of Inspector General for the Federal Reserve's Board of Governors has concluded its investigation into the costly renovation project at the Federal Reserve, determining that there was no administrative misconduct by former Fed Chair Jerome Powell, despite significant cost overruns and public criticism from President Donald Trump [1]. The investigation was initiated at Powell's own request in July 2025, following scrutiny over the project's expenses and Trump's accusations of 'gross incompetence' and threats of legal action and dismissal against Powell [1].
In January, Powell disclosed that the Department of Justice had opened a criminal probe into his June 2025 congressional testimony regarding the renovation, but the U.S. Attorney's Office closed this investigation in April, while the inspector general continued its review [1]. 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 U.S. Attorney General in accordance with the Inspector General Act,' and further clarified that, although deficiencies in project management were identified and corrective actions recommended, no administrative misconduct was found [1].
President Trump had repeatedly called for Powell's resignation and urged the central bank to cut interest rates during the controversy [1]. Despite the criticism, Powell has stated he will remain on the Fed Board after his chairmanship ends but will not act as a 'shadow Fed chair' [1].
The inspector general's findings may help restore confidence in the Federal Reserve's leadership and internal oversight, though the report did highlight management deficiencies that require corrective action [1].
CONCLUSION
The inspector general's report clears Jerome Powell of any administrative or criminal misconduct related to the Federal Reserve's renovation project, despite political pressure and public criticism. While management deficiencies were noted, the outcome may help stabilize perceptions of the Fed's governance and Powell's legacy.