Test report partially relieves Fed Chairman Powell of renovation costs

US President Donald Trump had repeatedly criticized Jerome Powell, then head of the US Federal Reserve, because of the high costs of the Fed renovation. Now a test report has partially exonerated those responsible.

During the inspection of the construction project, no evidence of violations of federal law was found, the Fed's inspector general wrote in his audit report. There is also no evidence of administrative misconduct.

The renovation of the Fed, the world's largest central bank, had previously caused a dispute between Powell and Trump. The US President criticized Powell for escalating costs and repeatedly threw out inflated figures. Trump also used the construction costs as a reason to call for the firing of Powell, whose monetary policy Trump did not agree with. This fueled concerns about the independence of the central bank.

Ministry of Justice is investigating

Last January, the US Department of Justice began investigating Powell. They were related to his speech to Congress, which also discussed the restructuring. The investigation ended in April without any results.

However, the report also found deficiencies in the supervision of the construction project. The planned construction costs were estimated at $921 million in 2020 - and had more than doubled to around $2.1 billion at the beginning of this year. The Inspector General criticizes, among other things, the fact that the Fed did not obtain a cost estimate in a timely manner and also did not communicate a cost cap.

Trump viewed the report as confirmation of his allegations. Justice Minister Todd Blanche will examine possible steps in view of the excessive costs, Trump said on the Truth Social platform. "This is Jerome Powell's fault and he should be forced to resign IMMEDIATELY." Powell's term as head of the US Federal Reserve ended as scheduled in May. He remains a member of the Fed Board.