{"id":632394,"date":"2026-09-30T19:12:11","date_gmt":"2026-09-30T19:12:11","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/632394\/"},"modified":"2026-09-30T19:12:11","modified_gmt":"2026-09-30T19:12:11","slug":"federal-reserve-watchdog-finds-no-criminal-violations-for-building-renovation-cost-overruns-federal-reserve","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/632394\/","title":{"rendered":"Federal Reserve watchdog finds no criminal violations for building renovation cost overruns | Federal Reserve"},"content":{"rendered":"

An internal watchdog said the Federal Reserve<\/a> mismanaged costs associated with a $2.4bn renovation of its Washington DC headquarters, but noted that no criminal violations occurred, according to a report released on Wednesday.<\/p>\n

For over a year, Donald Trump<\/a> has centered his attacks against the Fed and former chair Jerome Powell<\/a> around the renovations, including a months-long Department of Justice criminal investigation that was dropped<\/a> in April.<\/p>\n

The report said that the Fed\u2019s board of governors \u201chas not effectively managed\u201d the construction project and \u201crepeatedly deviated from its cost-management provisions\u201d, but noted that the mismanagement was not criminal and that it did not find any administrative misconduct in its evaluation.<\/p>\n

\u201cAt no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred,\u201d the report said.<\/p>\n

Over the course of renovations, construction costs have gone from an initially budgeted $921m in February 2020 to $2.018bn by December 2024. Construction was supposed to be completed in mid-2024 but is not slated to go until December 2027.<\/p>\n

The renovations have been a key part of the tension between the White House and the Fed, which by law is supposed to be non-partisan and independent. Trump has long been trying to pressure the Fed into lowering interest rates, to no avail.<\/p>\n

Trump latched on to the Fed\u2019s ongoing renovations as an attack point against Powell in June 2025, suggesting that it amounted to corruption. He suggested that renovations included elaborate features including a VIP dining room and a garden terrace.<\/p>\n

In response, the Fed posted a video tour of the ongoing construction, noting that two buildings have not undergone renovations since the 1930s.<\/p>\n

Trump visited the Fed\u2019s headquarters to highlight the expenses that July. Donning hardhats in the bowels of the construction site, Trump and Powell had a spat over budget figures.<\/p>\n

\u201cIt looks like it\u2019s about $3.1bn,\u201d Trump said at the time. \u201cIt went up a little bit or a lot.\u201d<\/p>\n

The typically reserved Powell became visibly annoyed. \u201cI am not aware of that,\u201d he said.<\/p>\n

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Soon after, Trump turned his Fed fight toward Fed governor Lisa Cook, whom he tried<\/a> to fire<\/a> over mortgage fraud. The supreme court ruled<\/a> earlier this summer that the firing was unconstitutional because the White House did not follow proper procedure.<\/p>\n

In January, Powell released a stunning video statement<\/a> announcing that the Department of Justice was investigating the renovations as part of a criminal investigation, noting that the investigation was \u201cpretext\u201d for the Fed not lowering interest rates.<\/p>\n

\u201cThis is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions \u2013 or whether instead monetary policy will be directed by political pressure or intimidation,\u201d Powell said at the time.<\/p>\n

The justice department investigation would end up stalling the confirmation<\/a> of current Fed chair Kevin Warsh<\/a>, after a key Republican senator said he would be a holdout until the department ended its investigation. In April, the justice department closed<\/a> the investigation.<\/p>\n

Trump and his economic advisers have continued to call for the Fed to lower interest rates, though the Fed most recently hiked rates<\/a>, citing high inflation.<\/p>\n","protected":false},"excerpt":{"rendered":"An internal watchdog said the Federal Reserve mismanaged costs associated with a $2.4bn renovation of its Washington DC…\n","protected":false},"author":2,"featured_media":632395,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-632394","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/632394","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=632394"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/632394\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/632395"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=632394"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=632394"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=632394"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}