The Federal Reserve Board mismanaged the multibillion-dollar renovation of one of its building complexes, but did not violate criminal law in doing so, according to a report by the Office of the Inspector General released Wednesday.
“At no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred requiring a referral to the U.S. Attorney General,” the OIG report said. “Further, while our report outlines deficiencies in the management of the renovation project … we did not identify administrative misconduct during our evaluation.”
The report’s conclusions drew the ire of President Donald Trump, who blamed Jerome Powell for the cost overruns, demanding in a Truth Social post Wednesday that the former Fed chair be forced to resign “IMMEDIATELY!”
“If he doesn’t resign, he should be sued, at the highest level, by the United States Government, for either corruption or incompetence, both of which are completely unacceptable,” Trump wrote.
Trump said he has asked Attorney General Todd Blanche to “study” the OIG’s report.
The renovation sparked outrage last year from Trump and Russ Vought, director of the Office of Management and Budget, over reports that costs ballooned from $1.3 billion in 2020 to more than $2 billion by 2024. In January, the Justice Department subpoenaed the Fed over Powell’s previous testimony on the renovations.
The project was originally slated for completion in mid-2024. The Fed board had approved $2.38 billion for it as of August, with construction expected to end in December 2027.
The Fed did not obtain a project cost estimate from the construction manager until January, 3 1/2 years after construction started, the OIG found. The project was already slated to cost $2 billion at that time, the watchdog found.
The OIG made several recommendations to the board with regard to the project, including negotiating a guaranteed maximum price for the project and determining what steps can be taken “to ensure the best value in finalizing completion of the renovation project.”
Trump wasn’t the only Washington figure to weigh in on the OIG report Wednesday. Sen. Elizabeth Warren, D-MA, recommended the Fed “swiftly implement the report’s recommendations.”
“Like Trump’s ballroom and his planned 250-foot triumphal arch, the Fed has overspent and underdelivered on its renovations,” Warren, ranking member of the Senate Banking Committee, wrote in a statement. “Today’s report underscores something I have long pushed for: Congress must act to improve transparency and accountability at the Federal Reserve.”
