Fed inspector general finds no crime or misconduct by Powell in headquarters renovation; Trump says he should resign from the board or be sued

The Federal Reserve's inspector general (the Fed's internal watchdog) released its review of the Fed headquarters renovation on Wednesday, Sept. 30. It found no criminal wrongdoing and no administrative misconduct by former chair Jerome Powell. It did fault Fed management, because construction costs more than doubled. The report puts them at $921 million in the board's February 2020 budget and $2.018 billion in its 2024 revised budget. The cost driver. Two mechanical, electrical and plumbing contracts reached $539 million, up from a $178 million estimate. The marble, water features and garden terrace that critics in Congress attacked "did not materially contribute" to the increases, the report said. Trump's response. He said Powell should resign his seat on the Fed board and asked Attorney General Todd Blanche to "study" the report. His words: "If he doesn't resign, he should be sued, at the highest level, by the United States Government, for either corruption or incompetence." Still open. No lawsuit has been filed, and no legal theory for one has been published.

How the Justice Department's Powell probe ran and ended:

• Jan. 2026: U.S. Attorney Jeanine Pirro's office served grand-jury subpoenas on the Fed over Powell's June 2025 Senate testimony about the renovation's costs.
• Mar. 13, 2026: Judge James Boasberg quashed the subpoenas, finding "essentially zero evidence" of a crime and signs they were meant to pressure Powell on interest rates.
• April 2026: Pirro dropped the probe but said she would "not hesitate to restart" it if the facts warranted.