Federal Reserve watchdog finds no criminal violations for building renovation cost overruns
News Source
β’Wed, 30 Sep 2026 17:49:27 GMT
π° What Happened
A Federal Reserve watchdog said the Fed badly managed a $2.4bn renovation of its Washington headquarters. But it found no criminal violations and no administrative misconduct. Costs rose from $921m planned in 2020 to $2.018bn by December 2024. The job was due to finish in mid-2024 but now ends in December 2027. The report came out on Wednesday.
π The Backstory
For over a year, President Donald Trump attacked the Fed and former chair Jerome Powell over the renovation costs. He suggested the project was corrupt and included fancy features. The Justice Department opened a criminal probe, then dropped it in April. Trump has long pushed the Fed to cut interest rates, but the Fed recently hiked rates instead, citing high inflation.
π― Why It Matters
The Fed sets interest rates that shape loans, savings and prices for everyone. A watchdog clearing it of crimes protects the bank's independence, which matters if you want rate decisions based on facts, not politics.
A Federal Reserve watchdog said the Fed badly managed a $2.4bn renovation of its Washington headquarters. But it found no criminal violations and no administrative misconduct. Costs rose from $921m planned in 2020 to $2.018bn by December 2024. The job was due to finish in mid-2024 but now ends in December 2027. The report came out on Wednesday.
For over a year, President Donald Trump attacked the Fed and former chair Jerome Powell over the renovation costs. He suggested the project was corrupt and included fancy features. The Justice Department opened a criminal probe, then dropped it in April. Trump has long pushed the Fed to cut interest rates, but the Fed recently hiked rates instead, citing high inflation.
The Fed sets interest rates that shape loans, savings and prices for everyone. A watchdog clearing it of crimes protects the bank's independence, which matters if you want rate decisions based on facts, not politics.