Powell cleared in Fed HQ renovation probe

The Federal Reserve’s inspector general cleared former Chair Jerome Powell of criminal wrongdoing in a probe into the central bank’s costly headquarters renovation.

He found no evidence that Powell broke federal criminal law or committed administrative misconduct. The Justice Department had separately investigated Powell over his congressional testimony about the project before ending its probe in April.

The findings matter because they remove a major legal cloud over Powell while shifting attention to how the Fed managed the renovation. Costs more than doubled to $2.5 billion, with some contracts rising sharply beyond earlier estimates.

One group of mechanical, electrical, and plumbing contracts jumped from a $178 million estimate to $539 million.

Despite the findings, President Donald Trump called for Powell’s resignation.

Powell remains on the Fed’s board.