Trump’s $2.4 Billion Criminal Case Against Former Fed Chair Powell Collapsed
President Donald Trump spent months attacking Jerome Powell over the Federal Reserve’s $2.4 billion headquarters renovation, accusing the central financial institution of waste and pushing for a felony investigation into Powell’s testimony in regards to the mission.
Now, the Fed’s personal watchdog has discovered no proof that Powell dedicated against the law or engaged in administrative misconduct.
Instead, the 120-page report factors to years of weak mission administration, design modifications, and poor value controls contained in the Fed itself.
The mission’s finances jumped from $1.317 billion in 2020 to $2.381 billion by December 2024. Construction prices alone greater than doubled, from $921 million to $2.018 billion.
How the Fed Lost Control of the Project
One discovering stands out. The Fed selected a contract designed to cap building prices, but by no means really set the cap.
By July 2026, 4 years into building and with greater than $2 billion of labor awarded, the mission nonetheless had no assured most value.
A swap from open-plan to closed workplaces additionally delayed the design by 21 months. Completion, initially anticipated in 2024, has now slipped to December 2027.
However, the political claims about luxurious spending didn’t clarify the overrun. Marble, fountains and a backyard terrace had been largely included within the authentic design and didn’t materially drive later value will increase, the watchdog discovered.
The Case Against Powell Is Now Over
On the felony query, the inspector basic was direct.
“At no level throughout our analysis did we discover affordable grounds to consider {that a} violation of federal felony legislation had occurred,” the report said.
It additionally discovered no administrative misconduct.
The DOJ opened its investigation in January over Powell’s 2025 Senate testimony. A federal choose later quashed the subpoenas, citing “basically zero proof” of against the law, earlier than prosecutors dropped the probe in April.
Powell had promised to stay on the Fed board till the matter was completed.
“I can’t go away the Board till this investigation is effectively and really over, with transparency and finality,” he said in April.
That situation has now successfully been met. The subsequent query is whether or not Powell stays till his governor time period expires in January 2028.
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