Federal Reserve headquarters renovation IG report and Trump's demands

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! If he doesn’t resign, he...

The Federal Reserve’s internal watchdog found no evidence of illegal behavior or administrative misconduct associated with the central bank’s nearly $2.5 billion project to overhaul its headquarters in Washington, D.C., even as it concluded that the renovations were poorly managed and lacked sufficient budget constraints. In a sweeping 120-page report, the Fed’s independent inspector general on Wednesday provided the most comprehensive overview to date of what caused extensive cost overruns on the project, which has been underway since 2022. It identified a range of missteps, including the Board of Governors’ failure to obtain a total cost estimate until the work was well underway or to establish a “guaranteed maximum price.” The project last year became a major front in President Donald Trump’s campaign to pressure the Fed into lowering interest rates. Trump repeatedly criticized Jerome...

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President Donald Trump has new ammunition he can use in his campaign against his perceived opponents at the Federal Reserve , although a watchdog report released Wednesday found no basis for criminal charges stemming from the Fed's costly renovations to its headquarters. Combined with separate disputes involving governors Lisa Cook and Michael Barr , Trump's decision to pin the headquarters spending issues on former Chair Jerome Powell means the president could potentially seek the removal of as many as three of the Fed's seven board members. But recent court rulings suggest any attempt would face significant legal hurdles. Any legal maneuvers could take months to play out and may have the effect of persuading his targets to postpone any plans to leave the Fed, as Powell has already done. Trump's ability to force the Fed off its recent decision to raise interest rates appears limited,...

The Fake News reports regarding the ongoing investigation into the disastrous renovation of the Federal Reserve Building are total lies. The newly confirmed Fed Chairman, Kevin Warsh, has announced an in depth, independent audit, and Attorney General Todd Blanche clearly stated that the Justice Department will investigate any and all evidence of wrongdoing. As this week’s Inspector General report detailed, this project is Hundreds of Millions of Dollars over budget, and way behind schedule, due to a total lack of leadership, oversight, and competence, of Jerome “Too Late” Powell. I look forward to learning the results of the professional audit and the DOJ investigation! Thank you for your attention to this matter. President DJT