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

An internal watchdog for the Federal Reserve released a report on Wednesday finding no criminal wrongdoing or violations in the central bank's $2.4 billion headquarters renovation project. However, the investigation concluded that the Fed broadly mismanaged the expansive project through a variety of missteps.

The inquiry directly addresses allegations made by Trump administration prosecutors and follows an unprecedented criminal probe opened by the Justice Department. The costly renovation project had previously served as a central focus of a pressure campaign waged by Donald Trump against former Federal Reserve Chair Jerome Powell.

The watchdog's findings effectively clear the former Federal Reserve chair of criminal liability regarding the headquarters' financial administration, resolving a high-profile inquiry that emerged from political tensions between the central bank and the executive branch.