Source Details

{
    "source_type": "extension",
    "content_hash": "db65f9e217ab794a2e2a5ea92d0ccdbe65516f8c6faa111d19642d242ee0f7aa",
    "submitted_via": "chrome_extension",
    "extension_version": "1.0.18",
    "original_url": "https:\/\/www.nytimes.com\/2026\/09\/30\/business\/fed-renovations-trump-powell-report.html?emc=edit_na_20260930&nl=breaking-news&segment_id=227312",
    "parsed_content": "U.S. EconomyElevated InflationMortgage RatesBond MarketInterest RatesPoverty RateGas PricesAdvertisementSKIP ADVERTISEMENTSupported bySKIP ADVERTISEMENTFed\u2019s Watchdog Finds No Misconduct or Illegal Activity in Costly RenovationsA new report by the Federal Reserve\u2019s independent inspector general concluded that a nearly $2.5 billion construction project was poorly managed but made no referrals to the U.S. attorney general.Listen \u00b7 7:50 min Share full articleRenovations to the Federal Reserve became a flashpoint between President Trump and Jerome H. Powell before Mr. Powell stepped down as the central bank\u2019s chair in May.Credit...Haiyun Jiang\/The New York TimesBy Colby SmithColby Smith covers the Federal Reserve.Sept. 30, 2026Updated 1:34 p.m. ETSee more of our coverage in your search results.Encuentra m\u00e1s de nuestra cobertura en los resultados de b\u00fasqueda. Add The New York Times on GoogleAgrega The New York Times en Google The Federal Reserve\u2019s internal watchdog found no evidence of illegal behavior or administrative misconduct associated with the central bank\u2019s nearly $2.5 billion project to overhaul its headquarters in Washington, D.C., even as it concluded that the renovations were poorly managed and lacked sufficient budget constraints.In a sweeping 120-page report, the Fed\u2019s independent inspector general on Wednesday provided the most comprehensive overview to date of what caused extensive cost overruns on the project, which has been underway since 2022. It identified a range of missteps, including the Board of Governors\u2019 failure to obtain a total cost estimate until the work was well underway or to establish a \u201cguaranteed maximum price.\u201dThe project last year became a major front in President Trump\u2019s campaign to pressure the Fed into lowering interest rates. Mr. Trump repeatedly criticized Jerome H. Powell, who served as Fed chair until May, for the cost overruns and frequently raised the question of whether he had committed fraud as he floated the idea of firing him.The Federal Reserve Act stipulates that the president can remove a sitting Fed official only \u201cfor cause,\u201d which has long been interpreted to mean gross negligence or a dereliction of duty. Mr. Trump\u2019s attacks on Mr. Powell culminated in a criminal investigation led by the Justice Department over whether Mr. Powell misled Congress about the project.AdvertisementSKIP ADVERTISEMENTThe inspector general\u2019s report undermined the Justice Department\u2019s investigation, which was abandoned in April after a number of legal setbacks. The watchdog found no wrongdoing by Mr. Powell or his colleagues and it affirmed that no referrals were made to the U.S. attorney general.The report\u2019s findings are significant given that Jeanine Pirro, U.S. attorney for the District of Columbia, had threatened to reopen the investigation at any point based on the inspector general\u2019s findings. That possibility contributed to Mr. Powell\u2019s decision to stay on as a governor after his term as chair expired, a position he can hold until January 2028. Kevin M. Warsh, who Mr. Trump handpicked to replace Mr. Powell, took over in May.Wednesday\u2019s report, which was commissioned by Mr. Powell in July 2025, was led by Michael Horowitz, who served as inspector general of the Justice Department before moving over to the Fed earlier that year. The document made clear that the Board of Governors, which has seven politically appointed, Senate-confirmed officials, was not engaged in the \u201cday-to-day management of the renovation project.\u201d Instead, those duties were delegated to staff members on the board\u2019s Facility Services team.The inspector general report found that the board did not obtain a project cost estimate until January 2026, three and half years after construction began and after more than $2 billion in costs had been earmarked. A guaranteed maximum price was never set, meaning there was no cap on spending nor built-in incentives to minimize costs.One aspect of the construction project that received significant criticism was the inclusion of certain design features in a 2021 proposal such as new marble, a rooftop terrace and private dining rooms for top policymakers. When pressed at a congressional hearing in June 2025, Mr. Powell denied that many of those features were part of the latest proposal.AdvertisementSKIP ADVERTISEMENT\u201cThere\u2019s no V.I.P. dining room. There\u2019s no new marble. We took down the old marble, we\u2019re putting it back up. We\u2019ll have to use new marble where some of the old marble broke. But there\u2019s no special elevators. There\u2019s just old elevators that have been there,\u201d he said at the time.Sign up for the On Politics newsletter. It's a pivotal moment for American politics. Join us for 2026 and beyond. Get it sent to your inbox.The inspector general\u2019s report corroborated Mr. Powell\u2019s statement, concluding that their investigators \u201cdid not find that these design features materially contributed to the substantial construction cost increases.\u201dThey acknowledged that some of the cost overruns were tied to inflation, which the Fed had flagged as a primary reason. But they also cited substantive design changes throughout the project, including the shift from an open-seating office plan to a closed-office arrangement, as well as the need for major mechanical, electrical and plumbing items that ran up the budget.In a statement on Wednesday, Senator Tim Scott, Republican of South Carolina, described the Fed\u2019s cost overruns as \u201cegregious\u201d and said that \u201cinflation does not change the Fed\u2019s responsibility to manage its resources prudently and be accountable to Congress.\u201d He vowed that the Senate Banking Committee, which he chairs, would \u201ccontinue rigorous oversight to ensure the Fed is transparent and stays focused on its mission.\u201d His Democratic counterpart on committee, Senator Elizabeth Warren of Massachusetts, said in her own statement that the watchdog\u2019s findings confirm that there is \u201cno basis to restart the President\u2019s witch hunt\u201d against Mr. Powell.AdvertisementSKIP ADVERTISEMENTIn a letter to Mr. Horowitz on Tuesday, Mr. Warsh said that he had retained the help of the General Services Administration, which is the agency responsible for managing federal work spaces, to work with the Fed \u201cin the task of finally bringing the renovations to a speedy and successful completion.\u201d He also said that the Fed would work with an independent auditor to examine the construction costs and, in keeping with the recommendations provided by the inspector general, that he would \u201cpromptly complete negotiations for a guaranteed maximum price for the project.\u201d He also said that staff would establish fixed metrics for the project\u2019s budget and schedule.Mr. Warsh\u2019s arrival at the Fed has to some extent reset relations between the central bank and the White House, at least with top leadership. Mr. Trump has so far refrained from criticizing Mr. Warsh, even after the chairman voted with his colleagues to raise rates in September.Mr. Trump directed his anger instead at other members of the Board of Governors, who he accused of being \u201chostile\u201d and \u201cpolitical.\u201dOne of those governors, Lisa D. Cook, is currently involved in an extensive legal battle with Mr. Trump, who in August renewed his efforts to oust her after the Supreme Court ruled against the administration\u2019s earlier attempts. Michael S. Barr, a governor nominated by President Biden, also appears to be under heightened scrutiny for the implosion of Silicon Valley Bank, which happened under his watch in 2023 when he was serving as vice chair for supervision.An external report on the bank\u2019s failure released earlier this month, which was commissioned by the current vice chair for supervision, Michelle W. Bowman, concluded that the central bank\u2019s regulators \u201cknew, or should have known\u201d about the mounting vulnerabilities at the lender. Instead, they failed to intervene in a timely fashion because of a \u201cfear of taking action that may later be viewed as mistaken and being held accountable for such,\u201d the report said.\u201cPresident Trump has repeatedly called out mismanagement and incompetence at the Federal Reserve in recent years, and the preliminary report on the Fed\u2019s response to Silicon Valley Bank\u2019s failure reinforces that unfortunate reality,\u201d Kush Desai, a White House spokesman, said in a statement. Mr. Barr \u201cfailed to do his job throughout this debacle,\u201d he added.AdvertisementSKIP ADVERTISEMENT",
    "published_at": "2026-09-30T17:00:37+00:00",
    "author_name": "Colby Smith",
    "site_name": "The New York Times",
    "section": "U.S. Economy",
    "publisher": "The New York Times Company",
    "ai_headline": "Fed\u2019s Watchdog Finds No Misconduct or Illegal Activity in Costly Renovations",
    "ai_simplified_title": "Fed Watchdog Clears Powell on Renovation Misconduct",
    "ai_excerpt": "A Federal Reserve inspector general report found no misconduct or illegal activity in the central bank's nearly $2.5 billion renovation project, despite poor management. The findings undermine a Justice Department investigation into former Fed Chair Jerome H. Powell.",
    "ai_subject_tags": [
        "Federal Reserve",
        "Jerome Powell",
        "Donald Trump",
        "Government Oversight",
        "Renovations",
        "Cost Overruns",
        "Inspector General",
        "US Economy"
    ],
    "ai_context_type": "News",
    "ai_context_details": {
        "tone": "informative",
        "perspective": "neutral",
        "audience": "general",
        "credibility_indicators": [
            "expert_quotes",
            "data_cited",
            "official_report_cited"
        ]
    },
    "ai_source_vector": null,
    "ai_confidence_score": 0.9999999999999999,
    "ai_extraction_metadata": {
        "extracted_at": "2026-09-30T18:00:11.603262Z",
        "ai_model": "gemini-2.5-flash",
        "extraction_method": "automated",
        "content_length": 8545,
        "metadata_prompt_body_chars": 8545,
        "metadata_prompt_truncated": false,
        "url": "https:\/\/nytimes.com\/2026\/09\/30\/business\/fed-renovations-trump-powell-report.html",
        "existing_metadata": {
            "author_name": null,
            "published_at": null,
            "domain_name": "nytimes.com",
            "site_name": null,
            "section": null,
            "publisher": null
        },
        "openai_refusal_gemini_fallback": false
    }
}

{
    "extracted_at": "2026-09-30T18:00:11.603262Z",
    "ai_model": "gemini-2.5-flash",
    "extraction_method": "automated",
    "content_length": 8545,
    "metadata_prompt_body_chars": 8545,
    "metadata_prompt_truncated": false,
    "url": "https:\/\/nytimes.com\/2026\/09\/30\/business\/fed-renovations-trump-powell-report.html",
    "existing_metadata": {
        "author_name": null,
        "published_at": null,
        "domain_name": "nytimes.com",
        "site_name": null,
        "section": null,
        "publisher": null
    },
    "openai_refusal_gemini_fallback": false
}