A Federal Reserve watchdog has concluded that the central bank mishandled renovations at the center of a dispute involving President Donald Trump and Fed Chair Jerome Powell, according to washingtonpost.com. The same review found no misconduct or illegal activity by Powell in connection with the project, The New York Times and PBS reported.
The findings, published Thursday, address the renovation work that Trump cited in his effort to remove Powell from his post, washingtonpost.com reports. The watchdog's report separates criticism of how the project was managed from any allegation of criminal conduct by the Fed chair.
Fox Business described the release as the final verdict on both the troubled renovation and Powell. The New York Times reported that the review identified no misconduct or illegal activity, while PBS characterized the conclusion as finding no criminal activity by Powell related to the renovation.
Despite the clearance, Trump said Powell should leave the Fed board, according to the Financial Times. That position signals the political pressure on Powell is unlikely to ease even after the watchdog declined to substantiate wrongdoing.
The episode has drawn attention because it touches both the Fed's internal operations and the independence of its leadership. The renovation costs became a flashpoint in the broader tension between the White House and the central bank, with the watchdog's conclusions now on the record.
What to watch next: whether Trump's call for Powell to step down gains traction on Capitol Hill or within the Fed, and how Powell responds to the report's criticism of the renovation process.
