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Fed inspector general reports no wrongdoing by Powell over renovation cost overruns
October 1, 2026
The Federal Reserve's inspector general reports no misconduct or criminal grounds against Jerome Powell over the costly renovation of Fed offices.
Jerome Powell, former chair of the Federal Reserve, remains a governor, and the Fed's office renovation underway since 2022 drew attacks from Trump and scrutiny from Congress.
The Fed's inspector general finds no wrongdoing by Jerome Powell or his colleagues over the renovation, NBC News and The New York Times report. NBC News carries the report's language that it found no administrative misconduct and no grounds for a criminal referral, and Axios reports the same conclusion. The New York Times describes a 120-page report and says investigators tied part of the overruns to inflation, which the Fed had named as a main cause.
The outlets agree on where the money went. NBC News lists limited subcontractor bidding, interior design changes and hard site conditions alongside inflation, and it reports that the Fed board never set a guaranteed maximum price despite $2 billion in awarded work. Axios reports that the marble, water features and garden terrace that critics singled out did not add materially to the cost, a finding The New York Times also carries. On the politics, NBC News reports the president's response on Truth Social. “This is Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY! If he doesn’t resign, he should be sued, at the highest level, by the United States Government, for either corruption or incompetence, both of which are completely unacceptable,” Trump wrote. The New York Times reports that he wants Attorney General Todd Blanche to review the findings, and that Kevin Warsh, now chair, plans to settle a guaranteed maximum price.
Politico frames the result as raising the odds that Powell stays at the Fed as a governor until January 2028, a term The New York Times also notes. The finding of no misconduct is corroborated across the outlets; the Justice Department's next step and Powell's own plans are still developing.
Still developing
The study Mr. Trump asked Todd Blanche to make of the findings had not firmed up as of this draft.
How settled the reporting is
Sources
- Axios — Fed watchdog clears former chair Powell in renovation probe
- NBC News — Watchdog finds no criminality in Fed renovation that drew Trump’s scrutiny - NBC News
- The New York Times — Fed’s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations - The New York Times
- PBS — News Wrap: Watchdog finds no criminal activity by Powell related to Fed renovation
- Politico — Why Powell is likely to stick around at the Fed - POLITICO
Toggle read the full reports of all 6 outlets counted on this event.