Former Federal Reserve Chair Jerome Powell and other Fed officials have been cleared of any criminal wrongdoing in managing the central bank’s renovation project. An internal report by the Fed’s inspector general, Michael Horowitz, confirmed this conclusion.
The investigation focused on the management of a multimillion-dollar renovation project for two Fed buildings in Washington, D.C. While the report cleared Powell of legal violations, it noted that the construction management contract was not executed effectively.
Horowitz launched the investigation in April, responding to a recommendation from U.S. Attorney for the District of Columbia, Jeanine Pirro. Pirro’s office had examined Powell’s management over three months, questioning whether it was used as leverage to pressure the Fed to lower interest rates, a consistent request from President Trump at the time.
Powell publicly defended his actions, suggesting that the investigation was meant to influence the Fed’s decisions on interest rates. In a video statement, he emphasized that interest rates are determined by the Fed’s dedication to serving public interest rather than any political pressure. The Justice Department’s focus included Powell’s testimony before the Senate Banking Committee, where he addressed Senator Tim Scott’s concerns about the renovation costs.
“There’s no VIP dining room. There’s no new marble. We took down the old marble, and we’re putting it back up, replacing broken sections with new marble,” Powell explained during his testimony.
Additional economic updates include:
- An appeals court has ruled that President Trump colluded with the DOJ concerning a $10 billion lawsuit involving the IRS.
- A bipartisan deal on permitting reform has been announced, aimed at expediting energy and infrastructure projects.
- August saw a dip in the Federal Reserve’s preferred inflation measure to 3.4%, signaling potential interest rate hikes.
- Ken Griffin, founder and CEO of Citadel, is donating $3 billion to Carnegie Mellon University.
Other news highlights include accusations against Senator Eric Schmitt for attempting to tie former special counsel Jack Smith to a supposed conspiracy involving President Trump. Additionally, Senate Democrats blocked a bill by Senator Pete Ricketts, designed to limit stock purchases by Congress members, citing insufficient measures against corruption.