No Criminal Element Found in Federal Reserve's Renovation Costs

The Federal Reserve's internal audit unit reported that it could not effectively manage the costs of the $2.4 billion renovation project of its headquarters in Washington DC, but did not detect any criminal element. The report published on September 30, 2026, stated that while the renovation project was initially estimated to cost $921 million in February 2020, the cost had risen to $2.018 billion by December 2024. Although the construction related to the project was planned to be completed by mid-2024, it has now been extended to December 2027. The report emphasized that the Federal Reserve's board of directors could not effectively manage the construction project costs. However, it was noted that this mismanagement did not constitute a crime and that there was no administrative error. The report stated, "We found no reasonable cause to believe that federal criminal law was violated during our assessment." This issue arose during a period when former President Donald Trump intensified his criticisms of the Federal Reserve. Trump attempted to pressure the former Federal Reserve Chairman Jerome Powell by using this renovation process. Allegations had emerged regarding the inclusion of some luxury features during the renovation works. Trump highlighted the renovation costs in 2025 and discussed this issue with Powell. The prolonged duration of the renovation works and the rising costs created tension between the White House and the Federal Reserve. Trump continued to exert pressure for the Federal Reserve to lower interest rates. Finally, although Trump and his advisors continued to call for the Federal Reserve to lower interest rates, the institution last raised interest rates, citing high inflation as the reason. The independence and neutrality of the Federal Reserve, as well as its ability to make decisions based on economic conditions without political pressure, remain a topic of interest for observers.