Inspector General Report Clears Jerome Powell in Fed Renovation Controversy

The report, released in late September 2026, clears former Chair Jerome Powell of personal wrongdoing in the $2.4 billion headquarters renovation.

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While exonerating Powell, the inspector general faulted the Fed’s board for a series of management failures. It noted the board did not set price caps, failed to require bidders to disclose full cost estimates, and neglected day-to-day monitoring, at one point forgoing competitive bids to keep the project moving. The renovation’s total budget has nearly doubled from the 2020 estimate, now hovering around $2.4 billion.

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Fed Chairman Kevin Warsh, who succeeded Powell in May, accepted the findings and pledged to implement all seven corrective actions, including an independent audit and a request to the Government Services Administration for oversight assistance. A Federal Reserve spokesperson limited comment to Warsh’s letter. White House spokesman Kush Desai said the report “reinforces the gross mismanagement” highlighted by the president, blaming prior Fed leadership for inadequate cost-control enforcement. U.S. Attorney Jeanine Pirro, who dismissed a criminal probe in April, announced her office will review the inspector-general report and may reopen the investigation if warranted.

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President Donald Trump rejected the findings, reiterating his demand that Powell resign. Trump also asked Attorney General Todd Blanche to examine the report and indicated he would consider further legal action.

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• Renovation budget: roughly $2.4 billion (inspector-general report).

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• Initial 2020 estimate: about half of the current budget, indicating a near-doubling of costs.

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