Fed Hands Renovation to Another Agency Amid Oversight Failures.
The Federal Reserve's inspector general found no grounds for a criminal referral and no administrative misconduct in the central bank's headline renovation project, according to a 120-page report released Wednesday.
- $2.4 billion is the project's current price tag, up from a $921 million estimate in 2020.
- Roughly $1 billion in cost overruns stemmed from management failures, not luxury design features.
- Water features, marble and a garden terrace did not materially drive the cost increases, the IG found.
- $346 million went to plumbing and air conditioning alone — triple the initial estimate.
Why it matters: The renovation became a flashpoint in the Trump administration's yearslong effort to pressure Powell to cut interest rates or resign. The Justice Department briefly opened a criminal probe, and a federal judge quashed its subpoenas in March, ruling they were a pretext for pressuring Powell.
- The IG found the Fed never established a guaranteed maximum price, leaving it exposed as inflation and design changes pushed costs higher.
- A 2023 shift from open to closed office layouts delayed the project and extended its exposure to inflation, the report found.
How 34 sources split on this story
Where they split: Center coverage emphasizes management deficiencies as systemic; left-leaning outlets place heavier emphasis on the finding as a rebuttal to the Trump administration's accusations against Powell.
Center coverage, 12 sources: The center frames the report as a mixed outcome — clearing Powell of wrongdoing while documenting genuine institutional failures that warrant corrective action.
Reuters1dThe Fed's building renovations and Trump's push to oust Powell
CNBC1dFed watchdog finds renovation failures, but no grounds for criminal referral
Associated Press1dNo criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged
Axios1dFed watchdog clears former chair Powell in renovation probeCNCTV News1dU.S. Fed watchdog finds no crimes in US$2.4B building renovation, only mismanagement
Financial Times1dFed watchdog finds ‘deficiencies’ in $2.5bn headquarters renovation projectNOTNOTUS1dWatchdog Says the Federal Reserve Building Renovation Was Mismanaged, Not Criminal - The Washington Sun
PBS NewsHour1dNo criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged
The Hill1dFed watchdog finds no criminality in renovation probe
USA Today1dWatchdog finds no criminal misconduct in $2.5 billion Fed renovationWYWKBN Youngstown1dFed watchdog finds no crimes in $2.4B building renovation, only mismanagementYNYahoo News1dFed watchdog clears Jerome Powell but says board mishandled renovation costsLeft coverage, 10 sources: The left frames the report as vindicating Powell and exposing the Trump administration's legal pressure campaign as unfounded and politically motivated.
CNN1dPowell did not break the law with expensive Fed renovations that incensed Trump, report finds
NBC News1dWatchdog finds no criminality in Fed renovation that drew Trump’s scrutiny
The Independent1dNo criminal wrongdoing in $2.5Bn Federal building renovation but it was mismanaged, watchdog finds
Al Jazeera1dUS Fed watchdog finds no criminal wrongdoing in Powell-era renovation costs
MSNBC1dInspector general investigation discredits Trump’s claims about Federal Reserve renovations
Politico1dWatchdog finds no evidence of misconduct by Fed in HQ renovation
Raw Story1dWatchdog eviscerates Trump's claim that nemesis botched massive projectTBGThe Boston Globe1dFed watchdog finds no criminal wrongdoing in building renovation
The New York Times1dFed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations
The Washington Post1dWatchdog finds Fed mishandled renovations that Trump tried to oust Powell over
Just the News1dFed hands HQ renovation to another agency amid scrutiny
The Epoch Times2dReview of Fed Renovation Finds Mismanagement
Breitbart News1dFed Chair Warsh Moves to Remedy Serious Oversight Failures Found in Construction Report
New York Post1dFed blasted by top watchdog over 'mismanaged' $2.5B 'Palace of Versailles' HQ work
Newsmax1dWatchdog Clears Powell, Says Fed Board Mishandled Costs
NTD22hReview of Fed Renovation Finds Management Failures, No Grounds for Criminal ReferralTCSThe Center Square3hFed awarded $2B on renovation without a guaranteed price
The Gateway Pundit1dHERE WE GO: Internal Watchdog Says Federal Reserve’s Renovation Was Mismanaged But Found No Criminal Wrongdoing in $2.5 Billion Boondoggle * The Gateway Pundit * by Cristina Laila
The Washington Times1dIG report finds no misconduct around Fed building renovation
Washington Examiner1dFederal Reserve watchdog finds no illegal conduct from Jay Powell in building renovations
WND1d‘This is Jerome Powell’s fault’: Watchdog says Fed’s $2.5 billion boondoggle renovation was mismanaged, not criminal * WorldNetDaily * by Cristina Laila, The Gateway Pundit
ZeroHedge1dFed Watchdog Finds No Crimes In $2.4 Billion Renovation, Just Everything ElseWhat’s next: Warsh agreed to all seven IG corrective actions, including an independent contractor audit.
- The GSA will now serve as project executive, effective immediately, Warsh said.
- Construction is expected to run through December 2027, three years past its original completion date.
- Whether the Justice Department or U.S. Attorney Jeanine Pirro will take any further action following the IG's findings.
- Whether the Trump administration will renew pressure on Powell in his remaining role as a Fed governor.
- How involving the GSA in Fed operations may affect the central bank's operational independence.