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Fed watchdog finds no crimes in $2.4B building renovation, only mismanagement

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IG report finds no misconduct around Fed building renovation

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Fed Watchdog Releases Long Awaited Audit Of Building Cost Overruns 1D2B1Efb

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White House accuses Powell of mismanaging Federal Reserve, citing headquarters renovation

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Watchdog finds Fed mishandled renovations that Trump tried to oust Powell over

Al Jazeera

US Fed watchdog finds no criminal wrongdoing in Powell-era renovation costs

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No criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged

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Federal Reserve watchdog finds no illegal conduct from Powell renovations

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Feds Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations

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Fed watchdog finds no laws broken in $2.5 billion Fed renovations Trump has called "disgraceful"

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Fed Watchdog Finds No Crimes In $2.4 Billion Renovation, Just Everything Else

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Fed watchdog clears former chair Powell in renovation probe

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Inspector General clears Jerome Powell in Fed renovation probe

Jerome Powell didnt break the law with expensive Fed renovations, report says

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Fed watchdog finds renovation failures, but no grounds for criminal referral

Powell asks inspector general to review $2.5 billion renovation after Trump blasts Fed project

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Watchdog finds no criminality in Fed renovation that drew Trumps scrutiny

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"It will then likely continue holding rates steady for the rest of 2026, before hiking 25 basis points (bp) in the third quarter of 2027."

"With the Iran conflict unresolved, oil prices remaining high, and persistent inflationary pressures, the conditions required for the Fed to cut rates have yet to emerge."

"Outside economists and business leaders broadly agree that while easing geopolitical tensions could pave the way for rate cuts in 2026, policymakers risk moving too quickly if inflation tied to energy prices remains elevated."

"Traders in the futures market shifted the probability of a rate increase by the end of 2026 to 52% on Friday morning."

“Despite higher inflation forecasts the FOMC retains an easing bias, with a narrow majority on the committee expecting cuts to resume this year.”

"There is a 36.9% chance that there will be zero interest rate cuts in 2026."

"In the new [Bloomberg] survey, conducted March 6-11, just after the outbreak of hostilities in the Middle East, respondents said they expect [rate cut] moves in June and October."

"There was no clear consensus where rates would ​end the year, but 71 [of 103] economists still expected at least one cut."

"We [BofA]  still expect cuts this year given the Fed's bias to look through supply-driven inflation, little signs of wage pressures, and political pressure."

"We continue to ​think signs of a weakening labor market ​will ⁠result in [rate] cuts later in the year. But the timing of upcoming data suggests a later start ⁠to ​rate cuts than we had ​previously been expecting."

"I want to see a little bit of recovery there. But, of course, I've written three cuts in for before the end of 2026 to hopefully support the labor market."

Will the Federal Reserve Cut Interest Rates in 2026?

The U.S. Federal Reserve's inspector general said Wednesday that it found no reasonable grounds to believe federal criminal law was violated in the renovation of the central bank's Washington headquarters, and it identified no administrative misconduct.

The U.S. Federal Reserve's inspector general said Wednesday that it found no reasonable grounds to believe federal criminal law was violated in the renovation of the central bank's Washington headquarters, and it identified no administrative misconduct.

The 120-page report faulted the Fed board for failing to establish a guaranteed maximum price four years into construction and for insufficient internal project governance, concluding the board had not effectively executed its contract.

The 120-page report faulted the Fed board for failing to establish a guaranteed maximum price four years into construction and for insufficient internal project governance, concluding the board had not effectively executed its contract.

Construction costs for the Eccles Building and 1951 Constitution Avenue Building more than doubled, rising from an estimate of about $1.3 billion in 2020 to roughly $2.4 billion, with completion now scheduled for December 2027.

Construction costs for the Eccles Building and 1951 Constitution Avenue Building more than doubled, rising from an estimate of about $1.3 billion in 2020 to roughly $2.4 billion, with completion now scheduled for December 2027.

Design features that drew criticism, including marble, water features, a garden terrace and private elevators, did not materially contribute to the cost increases, the watchdog found, pointing instead to inflation, limited bidding and design changes.

Design features that drew criticism, including marble, water features, a garden terrace and private elevators, did not materially contribute to the cost increases, the watchdog found, pointing instead to inflation, limited bidding and design changes.

Fed Chair Kevin Warsh, <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2026/warsh-sworn-in-as-fed-chair-amid-inflation-surge">who took over in May,</a> accepted all seven recommendations and said that the General Services Administration would serve as project executive. He also pledged a full audit to pursue reimbursement for work not performed.

Fed Chair Kevin Warsh, who took over in May, accepted all seven recommendations and said that the General Services Administration would serve as project executive. He also pledged a full audit to pursue reimbursement for work not performed.

This comes after <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2026/fed-chair-powell-faces-criminal-probe-over-testimony">the U.S. Justice Department opened a criminal probe into then-Fed chair Jerome Powell</a> over his June 2025 testimony about the renovations. But a judge quashed subpoenas issued by U.S. Attorney Jeanine Pirro, and <a target="_blank" rel="noopener noreferrer nofollow" href="https://www.verity.news/story/2026/doj-drops-criminal-probe-into-fed-chair-powell">prosecutors closed the case in April.</a> Trump repeatedly mused about firing Powell.

This comes after the U.S. Justice Department opened a criminal probe into then-Fed chair Jerome Powell over his June 2025 testimony about the renovations. But a judge quashed subpoenas issued by U.S. Attorney Jeanine Pirro, and prosecutors closed the case in April. Trump repeatedly mused about firing Powell.

The watchdog's findings knock the legs out from under the Trump administration's political vendetta that was never about construction costs in the first place. Chasing Fed officials with prosecutors is just a distraction from tariff chaos and things that are actually hurting the economy. Real fixes come from Congress writing better transparency rules, not from threats aimed at central bankers who won't bend on interest rates.

The watchdog's findings knock the legs out from under the Trump administration's political vendetta that was never about construction costs in the first place. Chasing Fed officials with prosecutors is just a distraction from tariff chaos and things that are actually hurting the economy. Real fixes come from Congress writing better transparency rules, not from threats aimed at central bankers who won't bend on interest rates.

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Blowing past the budget by hundreds of millions with no guaranteed maximum price years into construction is a management failure so glaring that no clean bill of health can excuse it. Anyone who can't keep a single building project under control has no business steering the nation's interest rate policy. Accountability here means Powell must step down. Incompetence with public money must carry consequences.

Blowing past the budget by hundreds of millions with no guaranteed maximum price years into construction is a management failure so glaring that no clean bill of health can excuse it. Anyone who can't keep a single building project under control has no business steering the nation's interest rate policy. Accountability here means Powell must step down. Incompetence with public money must carry consequences.

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Fed Watchdog Finds No Crime in HQ Renovation Overruns

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