The Federal Reserve’s internal watchdog has cleared Jerome Powell, the former chair of the Federal Reserve, and other officials of any criminal wrongdoing in the management of the central bank’s multimillion-dollar renovation project. This conclusion was reached in a report released on Wednesday.
The Fed Inspector General, Michael Horowitz, acknowledged that the Federal Reserve had not effectively executed the construction management risk contract for the renovations of two of its buildings in Washington, D.C. Horowitz’s investigation into Powell’s handling of the project commenced in April after U.S. Attorney for the District of Columbia Jeanine Pirro recommended a probe. Pirro had conducted her own three-month investigation into Powell’s actions.
Powell, defending himself against the allegations, claimed the investigation was an attempt to pressure the Federal Reserve to reduce interest rates. President Trump had consistently urged the central bank to lower rates. Powell stated, “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the president,” in a video message.
The Justice Department’s inquiry focused on Powell’s remarks to the Senate Banking Committee in June 2025, where he justified the rising costs associated with the renovation to Committee Chair Tim Scott. Powell assured there were no extravagant expenditures, such as VIP dining rooms or new marble;
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