No criminality, watchdog says
A Federal Reserve watchdog report found no evidence of criminal wrongdoing in a multibillion-dollar renovation project, despite criticism regarding cost management. Former President Donald Trump has used the report to call for the resignation of Fed Chair Jerome Powell.
Why it matters
The report highlights ongoing tensions between political figures and the central bank's leadership regarding institutional oversight and fiscal responsibility.
WASHINGTON — The Federal Reserve’s independent watchdog said Wednesday it found no reasonable grounds to believe there was a violation of federal law in a multibillion-dollar renovation project that drew criticism from President Donald Trump and short-lived scrutiny from federal prosecutors. But the central bank’s board “had not effectively executed” a contract and its cost-management provisions, according to a 120-page report from the Office of the Inspector General for the Board of Governors of the Federal Reserve System. Still, the report “did not identify administrative misconduct” or any “reasonable grounds to believe that a violation of federal criminal law had occurred.” Later Wednesday, Trump blamed the cost overruns on former Fed chair Jerome Powell, long a target of his ire. “This is Jerome Powell’s fault, and he should be forced to resign, IMMEDIATELY!
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