The cost of the renovations became the focus of President Trump’s pressure campaign against former Federal Reserve Chairman Jerome Powell.
Published September 30, 2026
The Federal Reserve’s inspector general had found no basis for criminal charges or evidence of administrative wrongdoing related to the costly U.S. central bank overhaul project that was the focus of President Donald Trump’s pressure campaign against former Fed Chairman Jerome Powell.
The watchdog agency released its findings Wednesday after examining renovations to two historic Federal Reserve buildings in Washington, D.C. The project is about $1 billion over budget, with an estimated cost of about $2.4 billion.
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“At no time during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law occurred that warranted referral to the United States Attorney General,” the inspector general said.
Trump repeatedly used renovation funds to attack Powell during his time as Fed chairman. The president has consistently pressured Powell to lower interest rates.
A Justice Department investigation into the project and Mr. Powell’s congressional testimony ended earlier this year after a federal judge agreed with Mr. Powell that it was a pretext to pressure the Fed chief to cut interest rates.
This latest oversight report identified serious deficiencies in the Fed’s project management, including the failure to establish a “guaranteed price ceiling” that would have shifted responsibility for cost overruns to contractors.
It also found that design features criticized by the White House, such as marble, plumbing fixtures and garden terraces, “did not materially contribute” to the excesses.
Cost overruns are common in government projects, and President Trump’s budget for the White House ballroom is double the original estimate.
