Watchdog finds Fed mishandled renovations that Trump tried to oust Powell over

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1. 1h ago

   Fed Watchdog Clears Jerome Powell of Criminality in Headquarters Renovation

   The Federal Reserve Inspector General found no evidence of criminal activity or administrative misconduct by former Chair Jerome Powell regarding the headquarters renovation project. While the watchdog criticized the central bank's board for failing to oversee the project and allowing cost overruns, it found no grounds for a criminal referral. Despite the clearance, Donald Trump has called for Powell's resignation and suggested he should be sued. The report follows a Justice Department investigation that was dropped earlier this year.

   Why it matters

   The renovation project cost nearly $2.5 billion. Donald Trump previously used the project's expenses to pressure Powell into lowering interest rates and threatened to fire him over fraud allegations.

   What is confirmed

   • The Federal Reserve Inspector General found no evidence of criminal violations or administrative misconduct by Jerome Powell.
   • The watchdog identified failures in the Federal Reserve's oversight of the headquarters renovation.
   • The renovation project cost approximately $2.4 billion to $2.5 billion.
   • The Justice Department dropped its investigation into the renovations earlier this year.
   • Donald Trump has called for Jerome Powell to resign following the report.

   Still unconfirmed

   • Jerome Powell was warned last year that he could be fired amid fraud allegations linked to the renovation.

   What to watch next

   • Legal filings if Donald Trump pursues a lawsuit against Powell
   • Further administrative actions by the Fed to address the identified oversight failures
   Sources used for this update (16)

   1. The Washington Post — Watchdog finds Fed mishandled renovations that Trump tried to oust Powell over
   2. The New York Times — Fed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations
   3. CNBC — Fed watchdog finds renovation failures, but no grounds for criminal referral
   4. Financial Times — Trump says Powell should resign after Fed watchdog clears ex-chair of misconduct
   5. Fox Business — The final verdict is in for the Fed's troubled renovation and Jerome Powell
   6. Politico — ‘He should be sued’: Trump slams Powell over report clearing Fed of criminal wrongdoing
   7. Reuters — Watchdog finds no Fed misconduct in renovation; Trump calls for Powell's resignation
   8. axios.com — Fed watchdog clears former chair Powell in renovation probe
   9. Yahoo — US watchdog finds no criminal wrongdoing in Fed renovations
   10. PBS — News Wrap: Watchdog finds no criminal activity by Powell related to Fed renovation
   11. trailmix.cc — Who’s the Leader of the Club – Trail Mix
   12. www.theguardian.com — Federal Reserve watchdog finds no criminal violations for ...
   confidence 95%