Federal Reserve watchdog finds no illegal conduct from Powell renovations
The inspector general for the Federal Reserve found that the institution did not “effectively manage” its renovations of the central bank’s headquarters in Washington, D.C., but found no grounds for a criminal probe into former Federal Reserve Chairman Jerome Powell.
TL;DR
- The Federal Reserve's inspector general found the institution did not effectively manage building renovations in Washington, D.C.
- No grounds were found for a criminal probe into former Federal Reserve Chairman Jerome Powell regarding the renovations.
- The cost of the renovations ballooned from an initial estimate of $1.9 billion to $2.5 billion.
- President Donald Trump had previously accused Powell of wrongfully spending money on lavish workspaces and demanded his resignation.
- The Department of Justice had previously investigated Powell but ended its inquiry in April.
- Powell's term as Fed Chairman ended, but he remains a board member until 2028.
- The Trump administration also sought to remove Fed governor Lisa Cook, leading to a legal battle.
- Trump reacted to the report by demanding Powell's resignation or a lawsuit against him.
- The buildings involved in the renovation are the Eccles Building and 1951 Constitution Avenue.