Jerome Powell vowed to stay on the Fed board after his term ends, rejecting claims he would become a shadow chairman.
Inspector General finds no misconduct in renovation probe
The Office of Inspector General began probing the Fed’s costly renovation project at Powell’s request in July 2025, after cost overruns sparked a criminal referral.
The DOJ opened a criminal investigation into Powell’s June 2025 congressional testimony, but the U.S. Attorney’s Office closed the case in April while the IG continued its review.
“At no point did we find reasonable grounds to believe a federal criminal law violation required a referral to the U.S. Attorney General,” the IG report states.
“We identified management deficiencies but found no administrative misconduct,” the report added.
Trump’s aggressive criticism fuels tension
President Donald Trump repeatedly assailed Powell over the renovation, labeling him “gross incompetent” and threatening legal action.
Trump also urged Powell to resign and demanded the Fed cut interest rates, heightening friction with incoming Chair Kevin Warsh.
Powell’s pledge to remain on the board after chairmanship ends underscores his refusal to be a “shadow Fed chair,” the IG report confirmed.
