Former Federal Reserve Chair Jerome Powell and Fed officials were cleared of violating criminal laws in managing the central bank’s multimillion-dollar renovation project according to a report by the Fed’s internal watchdog on Wednesday. Federal Reserve Inspector General Michael Horowitz acknowledged issues in executing the construction management risk contract for renovations of two Washington buildings.
Horowitz initiated the investigation into Powell’s handling of the project after a recommendation from U.S. Attorney for the District of Columbia, Jeanine Pirro. She conducted a three-month investigation into Powell. Powell defended himself saying the probe was a pressure tactic to reduce interest rates, a move President Trump has frequently pushed for. In a video message, Powell stated, “The threat of criminal charges comes from the Federal Reserve setting interest rates based on our best assessment for the public rather than following the president’s preferences.”
The Justice Department focused its investigation on Powell’s remarks in June 2025 to the Senate Banking Committee, where he defended the renovation costs to the committee’s Chair, Tim Scott. Powell clarified, “There’s no VIP dining room, no new marble, we replaced and restored the old marble, only installing new marble where necessary.”
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Essential Reads
Key business and economic news impacting the week and beyond includes:
- Appeals court supports findings of Trump colluding with IRS and Treasury.
- Senators announce a permitting reform deal to accelerate energy and infrastructure projects.
- Fed’s inflation measure dips to 3.4 percent in August with potential future interest rate hikes mentioned by central bank officials.
- Ken Griffin, Citadel founder and CEO, donates $3 billion to Carnegie Mellon University.
Good to Know
Highlighted business and economic news from other sources:
- CNCB reports Man City’s guilty verdict over ‘sham’ sponsorship deals.
- Reuters details the Fed finalizing bank ‘stress test’ overhaul.
What Others are Reading
Current top stories on The Hill include:
- Sen. Eric Schmitt (R-Mo.) faces backlash over a conspiracy theory involving special counsel Jack Smith.
- Senate Democrats block GOP incumbent Sen. Pete Ricketts’ bill restricting new stock purchases by Congress members.
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