[REVISION HISTORY]

Federal Reserve headquarters renovation investigation

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2026-10-02 23:50 UTC → 2026-10-04 20:34 UTC · added ~~removed~~

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.

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