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Fed inspector general finds no crime in headquarters renovation but cites poor management

The Federal Reserve's inspector general said it found no reasonable grounds to believe federal criminal law was violated in the renovation of the Fed's Washington buildings, but found the Board managed the project ineffectively. President Trump responded by demanding former Chair Jerome Powell resign from the Board.

12 outlets · 5L · 2C · 5R First reported Account updated

Updated (version 3). New coverage since the last version from Al Jazeera, Anadolu Agency, Hindustan Times, IJR, Just the News, New York Post, The Straits Times.

Image: NBC News
Image: Anadolu Agency
Image: Just the News
Image: CBS News
Image: IJR
Image: The Independent
Image: Washington Examiner
Image: Raw Story

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The story, neutrally told

The Federal Reserve's inspector general said on Wednesday it found no reasonable grounds to believe federal criminal law was violated in the multibillion-dollar renovation of the Fed's Washington headquarters. The roughly 120-page report nonetheless said the Board had not effectively managed and executed its construction contract and had repeatedly deviated from its cost-management provisions. Four years into construction, the Board had not set a guaranteed maximum price, and its internal project governance was judged "insufficient".

Features the White House had criticised, including marble, water features and a garden terrace, did not materially contribute to cost increases, according to the report. Fed officials pointed chiefly to inflation; CBS reports the inspector general found overruns exceeded inflation, while NBC lists inflation alongside limited subcontractor bidding, design changes and site conditions. Fed Chair Kevin Warsh wrote that the General Services Administration would become project executive, and CBS reports he said the Board would start a full audit.

The project drew criticism from President Trump, who called the $2.5 billion cost "disgraceful"; a Justice Department probe of Jerome Powell's Senate testimony saw its subpoenas quashed by a court as a pretext to pressure him on interest rates, and U.S. Attorney Jeanine Pirro ended it in April. After the report, Trump posted that Powell should be "forced to resign" from the Board and that he had asked Attorney General Todd Blanche to study the report. Sen. Tim Scott said the Banking Committee would keep up "rigorous oversight", and Pirro told CBS News she would review the report.

Every sentence links to the reporting it rests on.

Left5 outlets

Framing
Leads on the clearance of criminal wrongdoing and the contrast with Trump's attacks on Powell, while also reporting the management failings.
Emphasis
Features the White House criticised did not drive costs; the court ruling that the DOJ probe was a pretext; Trump's reaction.
Leaves out or plays down
Less detail on specific mismanagement episodes such as the 21-month design delay and missed competitive bids.
Charged language
“eviscerates”“fiery tirade”“pressure campaign”
For example
“Watchdog eviscerates Trump's claim that nemesis botched massive project” — Raw Story
“became a focal point of President Donald Trump’s pressure campaign against former Federal Reserve Chair Jerome Powell” — Al Jazeera
“The IG also did not find fault with features that the White House had complained were "ostentatious"” — CBS News

Centre2 outlets

No centre outlet in our sources has covered this story yet.

Right5 outlets

Framing
Reports the clearance of Powell but gives prominence to the Fed's mismanagement and cost overruns, especially in the New York Post.
Emphasis
Cost growth from $921 million, pay-as-you-go spending, the design delay and Trump's call for Powell to resign.
Leaves out or plays down
The Washington Examiner and IJR items are brief; the New York Post gives little on the court finding that the subpoenas were a pretext.
Charged language
“Palace of Versailles”“scathing”“bloated project”“botched overhaul”“lavish project”
For example
“A scathing watchdog report blasted the Federal Reserve on Wednesday for severely mismanaging its ‘Palace of Versailles” HQ renovation” — New York Post
“found no grounds for a criminal probe into former Federal Reserve Chairman Jerome Powell” — Washington Examiner
“Watchdog clears Powell of misconduct in Fed renovation with rising costs” — IJR