Fed Renovation Shake-Up

The Federal Reserve’s inspector general said the central bank’s headquarters renovation was badly mismanaged. The watchdog found no reasonable grounds to refer anyone for criminal prosecution or make an administrative misconduct finding. It said the Fed board lacked a comprehensive early cost estimate, set no guaranteed maximum price, and repeatedly broke cost controls. Powell requested the review, and a later Justice Department criminal probe into his testimony was dropped after a court quashed subpoenas as a pretext to pressure the Fed. Trump had attacked Powell over the project while pressing for lower rates. The Fed blamed design changes and higher costs, and said it will order an independent audit. Completion is expected in December 2027.