The Fed's Inspector General Finds No Crime and No Misconduct in the $2.5 Billion Headquarters Renovation — Hours Later Trump Says "Too Late" Powell "Should Be Forced to Resign, IMMEDIATELY!" or Be Sued "for Either Corruption or Incompetence," While Elizabeth Warren Says There Is "No Basis to Restart the President's Witch Hunt"
On Wednesday, Sept. 30, 2026, the Federal Reserve's Office of Inspector General released its review of the central bank's Washington headquarters renovation, the project President Trump has attacked for more than a year and that led the Justice Department to open, then drop, a criminal investigation of former Fed Chair Jerome Powell. The watchdog said that "at no point during our evaluation did we find reasonable grounds to believe that a violation of federal criminal law had occurred" and that it "did not identify administrative misconduct." It did fault Fed management for failing to control costs, which have more than doubled to roughly $2.5 billion, and attributed the overruns to inflation, limited contractor bidding, design changes and site conditions rather than luxury features. Powell, whose term as chair ended in May, has remained on the Board of Governors and has said he would not leave until the investigation was "well and truly over." Within hours of the report, Trump posted that Powell "should be forced to resign, IMMEDIATELY!" and, if he refuses, be sued by the federal government "for either corruption or incompetence," adding that he had asked Attorney General Todd Blanche to study the report. Senate Banking Chairman Tim Scott called the overruns "egregious" and promised oversight; ranking Democrat Elizabeth Warren said the report left "no basis" to restart the investigation.
“The Inspector General's Report just came out on Jerome 'Too Late' Powell's 'renovation' of the Federal Reserve Headquarters in Washington, D.C. … The Building is over budget, at a Record Setting rate and, at a minimum, 'Too Late' Powell should be forced to resign from the Board. He can't manage a Building, and he certainly shouldn't be allowed to manage his High Interest Rate Policy (only on 'TRUMP!'). I have asked Attorney General Todd Blanche to study the report, and make a determination as to what to do.”