# Federal Reserve headquarters renovation investigation

> Live situation record from CLSTR: https://clstr.news/situations/federal-reserve-headquarters-renovation-investigation
> Updated: 2026-10-02T21:17:13.000Z. Sources: 49. Developments: 2.

An investigation into the Federal Reserve’s Washington, D.C. headquarters renovation concluded that while the project suffered from systemic mismanagement, there was no evidence of criminal activity. The project’s costs rose from an initial 2020 estimate of $1.3 billion to approximately $2.4 billion due to inflation, design changes, and oversight failures, such as the lack of a guaranteed maximum price.

Following the Inspector General’s report, which cleared former Chair Jerome Powell of criminal violations, Attorney General Todd Blanche announced that the Department of Justice would not reopen a criminal probe into Powell. Blanche noted that while Powell ‘did not act appropriately as far as oversight,’ such errors did not constitute a crime. He stated he was ‘satisfied’ with the report, though he noted Powell’s supervision was ‘inadequate.’ The Justice Department noted it may still investigate if an independent audit commissioned by current leadership uncovers evidence of criminal behavior.

In response to the findings, current Fed Chair Kevin Warsh committed to implementing recommendations, including handing renovation management to the General Services Administration. Warsh has also ordered an independent audit to review renovation expenses to ensure compliance and transparency. The renovation has remained a political issue, with President Donald Trump previously calling for Powell’s resignation based on the cost overruns. Powell, whose term as chair ended in May, has remained on the Federal Reserve’s Board of Governors, stating he would not leave until the matter reached a transparent and final conclusion.

## Claims

- The Inspector General found no evidence of criminal wrongdoing by Jerome Powell regarding the headquarters renovation. (corroborated by 12 sources)
- The renovation project experienced significant management and oversight failures. (corroborated by 10 sources)
- President Trump called for Jerome Powell to resign from the Federal Reserve Board of Governors. (corroborated by 9 sources)
- The Department of Justice will not reopen the criminal investigation into former Fed Chair Jerome Powell. (corroborated by 8 sources)
- The headquarters renovation cost approximately $2.4 billion. (corroborated by 8 sources)
- Current Fed Chair Kevin Warsh will hire an independent auditor to review the renovation costs. (corroborated by 5 sources)

## Timeline

### 2026-10-02: Jerome Powell cleared as DOJ declines to reopen criminal probe into Fed renovation

The DOJ will not reopen a criminal probe into former Fed Chair Jerome Powell regarding a $2.4 billion headquarters renovation, despite an Inspector General report citing major management failures.

16 sources. https://clstr.news/cluster/us-doj-declines-to-reopen-criminal-probe-into-jerome-powell

### 2026-09-30: Federal Reserve watchdog finds no criminal wrongdoing in $2.4B renovation

A Federal Reserve watchdog report found no criminal wrongdoing in the $2.4 billion headquarters renovation but cited significant management failures and cost overruns, prompting calls for Jerome Powell's ouster

36 sources. https://clstr.news/cluster/federal-reserve-watchdog-clears-jerome-powell-of-misconduct-in-renovation-project

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Cite as: Federal Reserve headquarters renovation investigation. CLSTR, https://clstr.news/situations/federal-reserve-headquarters-renovation-investigation