US Fed Watchdog Finds No Criminal Wrongdoing in Powell-Era Renovation Costs

The Federal Reserve's internal watchdog has concluded that there was no criminal wrongdoing associated with renovation costs at the central bank incurred during Jerome Powell's tenure as chair, according to findings from the review.

The renovation expenses became a flashpoint after former President Trump's administration seized on the costs as part of a broader pressure campaign against Powell, who led the Fed through a period of tension with the White House over interest rate policy.

Scrutiny of spending

Critics had pointed to the scale of the renovation project as evidence of mismanagement at the Fed, fueling political attacks on Powell's leadership. The watchdog's finding of no criminal conduct removes one line of attack, though it does not necessarily resolve broader questions about the project's cost or oversight.

The review's conclusion comes after sustained public attention on the renovation, which had become entangled with the wider political dispute between Trump and the Fed over monetary policy independence.

It is not yet clear whether the findings will end scrutiny of the renovation project entirely, or whether further administrative or congressional review of the spending will follow.