Inspector General clears Jerome Powell of criminal wrongdoing
Federal investigators cleared former Federal Reserve Chair Jerome Powell of criminal wrongdoing on Wednesday, closing an inquiry into the soaring renovation costs of the central bank’s Washington headquarters. The Office of Inspector General found no reasonable grounds of federal criminal law violations or administrative fault, ending months of pressure from Donald Trump regarding monetary policy and institutional leadership.
Evaluating the Federal Reserve Headquarters Renovation Costs
Financial scrutiny centered on the capital expenditure required to modernize the central bank’s physical infrastructure in Washington, D.C. According to the Federal Reserve Office of Inspector General report published Wednesday, project outlays ballooned from 1,3 milliard de dollars en février 2020 to près de 2,4 milliards en décembre 2024. Investigators attributed the variance to a flambée des coûts de construction (matériaux, main-d’oeuvre) sur la période.
Despite acknowledging significant project management gaps tied to the construction timeline, investigators confirmed that no administrative fault or criminal behavior occurred. Jerome Powell had referred the matter to the inspector general himself in July 2025 amidst heavy public criticism from the White House over prevailing interest rate levels. Trump subsequently visited the construction site alongside Powell in July 2025, later supporting a criminal inquiry led by federal prosecutor Jeanine Pirro.
That inquiry triggered an intense backlash across global financial markets, with institutional investors rallying to protect the operational independence of the Federal Reserve. The friction temporarily fractured the congressional Republican majority and stalled the confirmation process for Kevin Warsh, whom Trump had nominated to succeed Powell. Prosecutor Pirro ultimately closed the probe in April, transferring final evaluation duties to the internal inspector general.
Political Fallout and Institutional Independence
Democratic lawmakers seized on the inspector general’s findings to push back against executive interventions in monetary policy. Senator Elizabeth Warren issued a statement criticizing the initial investigation as an unfounded campaign against the central bank leadership. The report confirms that federal prosecutors lacked any valid legal basis to pursue charges against Jerome Powell, according to congressional assessments.
Despite the conclusion of his term as chair, Powell continues to serve within the central bank as a governor. He elected to maintain his seat on the board to counter ongoing administrative pressures directed at the institution’s monetary policy mandate. Meanwhile, Kevin Warsh has successfully assumed leadership of the Federal Reserve following the clearance of the legal roadblocks.