Home · World · Sep 30 archive
Watchdog Clears Powell of Criminal Activity in Fed Renovation
Confirmed
In Short: Former President Donald Trump had repeatedly used the renovation costs to attack Fed Chair Jerome Powell, calling for his resignation on social media Wednesday.
The Federal Reserve’s inspector general has concluded that there is no basis for a criminal referral or evidence of administrative misconduct related to the costly renovation of two Fed buildings in Washington, DC.
The watchdog report, released Wednesday, found significant shortcomings in the Fed’s management of the project, including the failure to establish a guaranteed maximum price that would have shifted responsibility for cost overruns to the contractor.
Trump had also pressured Powell to lower interest rates during his tenure as president.
The inspector general stated, “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 US attorney general.”
A US Department of Justice investigation into the project and Powell’s congressional testimony was closed earlier this year after a federal judge agreed with Powell that the investigation was a pretext for pressuring him to lower interest rates.
What's confirmed
- The Federal Reserve’s inspector general has concluded that there is no basis for a criminal referral or evidence of administrative misconduct related to the costly renovation of two Fed buildings in Washington, DC.
- The watchdog report, released Wednesday, found significant shortcomings in the Fed’s management of the project, including the failure to establish a guaranteed maximum price that would have shifted responsibility for cost overruns to the contractor.
- Trump had also pressured Powell to lower interest rates during his tenure as president.
- A US Department of Justice investigation into the project and Powell’s congressional testimony was closed earlier this year after a federal judge agreed with Powell that the investigation was a pretext for pressuring him to lower interest rates.
What's still developing
- Trump said former Fed chair Jerome Powell should resign anyway.
- Trump took to social media Wednesday afternoon and called on Powell to resign.
- Trump repeatedly used the renovation costs to attack Powell during his time as Fed chief.