Watchdog finds no criminality in Fed renovation that drew Trump’s scrutiny

Live updates

1. 1h ago

   Fed Watchdog Finds No Criminality in $2.5 Billion Renovation Project

   The Federal Reserve's independent watchdog concluded a yearlong review finding no evidence of criminal wrongdoing or federal law violations in the central bank's multi-billion-dollar Washington, D.C. campus renovation. While clearing the project of illegal activity, the report blasts cost overruns and faults the Fed board for failing to effectively execute cost-management provisions in its contract. President Donald Trump has rejected the findings, stating that former Fed Chair Jerome Powell should be forced to resign or be sued for incompetence and corruption.

   Why it matters

   The renovation became a focal point for the Trump administration during a period when the president pressured Jerome Powell to lower interest rates. Powell served as Fed chair until Kevin Warsh took over the position in May. The investigation followed scrutiny from federal prosecutors and public criticism from the president.

   What is confirmed

   • The Federal Reserve's watchdog found no grounds to believe federal law was violated in the renovation project.
   • The renovation project cost $2.5 billion.
   • The watchdog report found the Fed board did not effectively execute its contract or cost-management provisions.
   • Donald Trump has called for Jerome Powell to be forced to resign from the Fed board.
   • Kevin Warsh took over as Fed chair in May.

   Still unconfirmed

   • Trump asked Blanche to study the watchdog report that cleared Powell.
   • Trump does not want his name on the renovated building.
   • The renovation cost was $2.4 billion.

   What to watch next

   • Legal action or lawsuits filed against Jerome Powell as suggested by Donald Trump.
   • Further responses from the Federal Reserve board regarding the mismanagement findings.
   Sources used for this update (21)

   1. NBC News — Watchdog finds no criminality in Fed renovation that drew Trump’s scrutiny
   2. The Washington Post — Watchdog finds Fed mishandled renovations that Trump tried to oust Powell over
   3. apnews.com — No criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged
   4. The New York Times — Fed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations
   5. cbsnews.com — Fed watchdog finds no laws broken in $2.5 billion Fed renovations Trump has called "disgraceful"
   6. Yahoo Finance — Fed's $2.5 billion renovation broke no laws, but watchdog blasts cost overruns
   7. forbes.com — Trump Says Jerome Powell Should Be ‘Forced’ To Resign
   8. CNBC — Fed watchdog finds renovation failures, but no grounds for criminal referral
   9. The Hill — Trump says he asked Blanche to ‘study’ Fed watchdog report that cleared Powell
   10. Financial Times — Trump says Powell should resign after Fed watchdog clears ex-chair of misconduct
   11. Fox Business — The final verdict is in for the Fed's troubled renovation and Jerome Powell
   12. Politico — ‘He should be sued’: Trump slams Powell over report clearing Fed of criminal wrongdoing
   confidence 95%