The Federal Reserve's inspector general found no administrative improprieties or grounds for criminal referrals in the overhaul of the central bank's Washington office. These findings clear Chair Jerome Powell, ending a formal legal threat and resolving a political flashpoint with the Trump administration that had previously involved quashed Justice Department subpoenas.

The 120 page report criticized the overall management of the $2.4 billion renovation but determined that high-gloss design finishes were not a primary driver of cost overruns. While the internal probe found no wrongdoing, the Fed will commission a separate, independent audit of the project to address identified deficiencies.