World · World News Bureau
US Federal Reserve watchdog clears Powell over renovation expenses
An investigation by the Federal Reserve's internal watchdog has found no evidence of criminal misconduct related to renovation costs incurred during Jerome Powell's tenure as chair. The expenses had become a flashpoint in former President Donald Trump's campaign against the former central bank leader.
LSN World News ·
The Office of Inspector General at the Federal Reserve completed its review of renovation expenditures overseen during Powell's chairmanship, determining that no illegal activity had occurred, according to findings released this week.
Renovation costs at the Federal Reserve building became a focal point of criticism as Trump ramped up pressure on Powell, who headed the institution from 2018 until June 2023. The former president had repeatedly called for Powell's removal, citing various policy disagreements and other concerns.
The inspector general's clearance removes one avenue of potential legal jeopardy for Powell, who had faced intensifying scrutiny over multiple aspects of his leadership during his final years at the central bank. The investigation examined whether the renovation expenses were properly authorized and conducted in accordance with federal regulations.
Powel's tenure saw significant monetary policy shifts, including aggressive interest rate increases aimed at combating inflation. His departure from the Federal Reserve followed a tumultuous period of political pressure and market volatility that characterized the final stages of the Trump administration's return to prominence in American politics.