משפט · Fed renovationFed Review Finds No Criminal Referral Grounds. Trump Still Wants Powell Outנכתב 1 באוקטובר 2026 בשעה 17:03 UTCצפייהתמליל0:09Donald Trump demanded Powell's resignation despite a renovation review, finding no0:13grounds for criminal referral.0:15The Federal Reserve's headquarters construction is projected to finish in December0:192027, years after its original target, without a finalized guaranteed maximum price.0:24What failed to control the costs and what accountability remains unfinished?0:28The evaluation also identified no administrative misconduct by Powell or other0:33officials.0:34That distinction matters.0:35Management and oversight failures contributed to escalating costs, but the review0:39did not substantiate the criminal or administrative misconduct accusations.0:44This is not a court verdict, an endorsement of every project decision or a0:48resolution of every conceivable legal issue.0:50The evaluation is dated September 29th, 2026, and was publicly announced September0:5530th.0:56Those are different dates for one evaluation.0:59It has 120 numbered pages, not the 121 described in some public accounts.1:04The investigation lasted more than a year.1:06Following Jerome Powell's July 2025 request for a review of the Eccles and 19511:11headquarters buildings in Washington, the approved renovation budget rose from1:15$1.317 billion in February 2020 to $2.381 billion in December1:202024.1:21That later amount remained approved as of August 2026.1:25Inside those totals, the construction component increased from $921 million to1:30$2.018 billion.1:32A separate broader multicycle capital budget increased from $1.378 billion to $2.4551:37billion.1:38These are different scopes, not interchangeable price tags.1:41None establishes how much cash has already been paid.1:44Public cost descriptions range from $2.4 billion to $2.5 billion, or nearly1:50$2.5 billion.1:51The Fed's public explanation later used approximately $2.46 billion.1:55The renovation line is close to the rounded $2.4 billion description.1:59The broader capital figure is close to $2.5 billion.2:02Scope and rounding help explain the range, but the basis and date behind every2:06published figure remain only partly reconciled.2:08Choosing one headline number would hide that uncertainty.2:11Construction began in July 2022.2:15The February 2020 plan expected the construction phase to finish in the second2:19quarter of 2024.2:21The revised projection is December 2027, not a guaranteed completion date.2:25The contract was supposed to place meaningful cost risk on the construction manager2:29and establish a guaranteed maximum price.2:31The board selected this construction manager at-risk approach after difficulties2:35with a different contracting approach on its Martin Building project, but it2:38repeatedly departed from the new contract's cost management provisions.2:42Internal governance was inadequate for the project's scale and complexity, and2:46available cost control actions went unused.2:48The board hired the construction manager as constructor in March 2022 after two2:53design phases, then began construction without that manager's project level2:57estimate.2:58By July 2026, four years after work began, material risk still had not been3:03transferred to the manager.3:04Cost certainty had not been obtained, and no overall ceiling had been established.3:09The guaranteed maximum price remained unfinished at the evaluation.3:12The board awarded 69 subcontractor work packages totaling $1.978 billion3:18between July 2022 and December 2025 before formally requesting a guaranteed maximum3:24price.3:25That award total excludes approximately $1.49 million in pre-construction services.3:30It is awarded construction work, not construction manager fees, and not a cash3:34disbursement total.3:35The formal price request came on December 30, 2025.3:39In January 2026, the manager submitted a proposed construction cost of $2.1353:44billion, including $2.078 billion in awarded construction costs and estimates for3:49remaining work across 84 packages.3:52This was the manager's construction cost and price ceiling proposal, not the Board's3:55first total project budget.3:56The approved total budget had existed since February 2020.4:00An $857 million design limitation had also gone unenforced.4:05The project team conveyed it to the architecture and engineering firm in April 2020.4:09but did not update it or require the firm to design to it.4:12Neither the construction manager nor the owner's representative was told of the4:16limitation.4:17It was distinct from the approved $921 million construction budget.4:21The owner's representative also lacked the project budget and detailed bid4:24information needed for independent cost validation.4:28Meanwhile, the manager's fee remained 2.95% of work rather than a fixed, capped fee.4:33Numerous limited-scope awards without a project-wide guaranteed price made the4:37arrangement resemble cost reimbursement instead of an effective transfer of overall4:41cost risk.4:42Those financial incentives and contract failures are not themselves a finding of a4:45federal crime.4:46Responsibility for cost and schedule was unclear.4:49Increases exceeding $100 million on individual packages were not adequately4:53escalated, and the owner's representative was not asked to independently validate4:56building systems packages running approximately $500 million above the earlier5:00design estimate.5:00Two core and shell mechanical, electrical, and plumbing packages rose from a $1785:06million estimate in March 2022.5:09To $539 million in awards in July and October 2023.5:13Using underlying unrounded figures, the increase was $362 million, or 203%.5:19Each package received two bids, not three.5:21Two interior fit-out systems packages rose from a $28 million estimate to $1555:26million awarded in June 2025, a reported 454% increase.5:32Together, the four packages totaled approximately $694 million, about5:37$488 million, or 237%, above the earlier estimate.5:42Three of the four lacked three bids.5:44Those three totaled $624 million.5:47Within the systems work, plumbing and heating, ventilation and air conditioning5:51costs rose from $107 million to $346 million.5:55These comparisons overlap.5:56Adding them together would double count costs.5:58Inflation contributed, but it did not explain those increases by itself.6:03Producer price inflation was approximately 16% from March 2022 to October 2023.6:09and 19% through June 2025, far below the package increases.6:14Those indexes are comparisons.6:16Not a precise measurement of inflation's effect on this particular project.6:20The Board supplied no project-specific inflation analysis.6:23Both inflation and management problems contributed.6:26A shift to predominantly closed offices delayed interior design completion by 216:31months.6:32Drawings developed from 2019 through 2022 assumed predominantly open workspaces.6:37The Board's January 2023 decision required changes to walls, doors, security,6:42ceiling spaces, and building systems distribution.6:44The redesign continued through October 2024, delaying substantial design completion6:49and guaranteed maximum price negotiations planned for fall 2023.6:53Building information model coordination for the 1951 building extended to October6:582025.6:59Eccles coordination remained incomplete in the construction manager's price proposal7:03narrative, but conspicuous design features were not material drivers of the7:07construction cost increases.7:09Marble, water features, the garden terrace, a private elevator for the chair, and7:12skylights.7:13That does not establish that every feature was absent or cost nothing.7:17It places the major accountability questions with bidding, design decisions,7:20contract controls, and governance.7:22The separate criminal investigation was closed, not merely blocked by a judge.7:26It concerned the renovation and Powell's June 2025 Senate Banking Committee7:30testimony.7:31Powell disclosed grand jury subpoenas in January 2026.7:35DC U.S.7:36Attorney Janine Pirro pursued the inquiry.7:38At a March 3 hearing, Prosecutor George A.7:40Masuko-Lataife could not identify evidence of renovation fraud or criminal7:44misconduct.7:44He argued that a $1.2 billion overrun supplied reason to investigate, and that a tip7:50or rumor could justify inquiry.7:52That figure was a prosecutorial argument, not an audited accounting measure or7:56evidence of a crime.7:57Chief U.S.7:58District Judge James E.8:00Boasberg quashed the subpoenas in an opinion dated March 11 and unsealed March 13th.8:05The justifications were thin and unsubstantiated, with essentially zero evidence to8:09suspect Powell of a crime.8:11The court identified extensive evidence that the subpoenas were intended to pressure8:15Powell into supporting lower interest rates or resigning.8:18The concern was criminal investigative machinery being used against a central bank8:21official over interest rates and his position, not a construction bill establishing8:25wrongdoing.8:25Pirro closed the investigation on April 24th while the Inspector General conducted8:30the evaluation, reserving the option to restart if facts warranted it.8:34Blocking subpoenas and closing an investigation were successive events, not8:38contradictory accounts.8:40The June 11th court decision recorded that the government closed its investigation8:44instead of appealing, despite earlier declarations that it would appeal.8:48The court also denied the government's attempt to erase the subpoena opinion on8:52mootness grounds.8:53Closure was a prosecutorial decision, not dismissal of an indictment.8:57None had issued.8:58The closure removed Senator Tom Tillis's block on Kevin M.9:01Worsh's confirmation.9:02Worsh became Fed chair in May 2026 after Powell's chair term ended, while Powell9:07remained a governor.9:08That continuing board service explains why Trump still sought Powell's resignation9:12after the chairmanship changed.9:14On September 30, Trump demanded that Powell resign or face a United States9:18government lawsuit for corruption or incompetence.9:20He asked Attorney General Todd Blanche to study the evaluation and determine a9:24response.9:25Trump characterized the project as costing at least $2.5 billion with no end in9:29sight.9:30The exact approved renovation budget was $2.381 billion, and the evaluation did9:34identify a December 2027 construction projection, though not a guaranteed finish.9:39Pirro's office was reviewing the evaluation.9:42Review is not an announced reopening, and Blanche's instruction to study it did not9:46bring a case.9:46As of October 4th,9:48no public filing established that the investigation had formally reopened, and no9:52new charges were established.9:54That limits what is publicly known.9:56It does not guarantee what prosecutors will decide next.9:59The board accepted all seven corrective recommendations.10:02They require negotiating a guaranteed maximum price or identifying another route to10:06best value.10:07Establishing cost and schedule success measures, and setting the construction10:11manager's fee as the contract provides.10:13Governance must assign an oversight body to monitor those measures, clarify10:17responsibility, authority, and accountability, and establish reporting to the board10:21and its relevant oversight committee.10:23The contract's audit clause should be exercised to validate all awarded costs,10:26including construction, allowances, contingencies, manager fees, and savings.10:31Contractor and owners' representative requirements must be reconciled with services10:35actually received, with reimbursement assessed for services paid for but not10:38delivered.10:39Future major initiatives need a standardized framework and agency policy, including10:44criteria for oversight committees, documented duties, and senior board or Federal10:48Reserve System members who do not themselves manage the project.10:50Warsh retained the General Services Administration as project executive effective10:55immediately in his September 29 response.10:58It reports to him and the Board and oversees the remaining work.11:01That is executive and advisory project oversight, not a transfer of Fed ownership.11:06Warsh committed to promptly completing guaranteed maximum price negotiations,11:10setting fixed budget and schedule measures with the project executive, and hiring an11:14independent auditor to verify the accuracy and compliance of all awarded costs to11:18date.11:19With GSA, the board will review contracts, determine the value of services not11:23received, and pursue appropriate remedies, potentially reimbursement or credits.11:27No recovery has yet been established.11:29Warsh committed to systematic implementation and accountability, prudent use of11:34public funds, and efficient, transparent completion.11:37The answer to the opening question is concrete.11:39The price ceiling, independent cost validation, and clear managerial accountability11:44were missing.11:45The evaluation produced no grounds for criminal referral and no administrative11:49misconduct finding.11:50The separate criminal inquiry was closed, with restart reserved, and reviewing this11:54evaluation did not itself reopen it.11:57Whether the board obtains a real ceiling, validates costs, recovers any amount owed,12:02and meets defined completion measures remains unfinished.12:05The Inspector General plans quarterly follow-up until all recommendations are12:09addressed.12:09No fixed calendar deadline has been established for completing the independent audit12:13or finalizing the guaranteed maximum price.קריאת הכתבהציר הזמן של הסיפורHeyDexהסרטון הקצר ↗מי דיווח על מהנקודות שדיווח עליהן יותר מכלי תקשורת אחדCriminal or legal findings on the renovation3 כלי תקשורתManagement and oversight of the renovation3 כלי תקשורתReported cost of the renovationשני כלי תקשורתנקודות שדיווח עליהן רק כלי תקשורת אחד9דווח רק על ידי CNBCDate the inspector general issued the evaluation30 בספט׳, 20:12 UTCSeparate Justice Department probe into renovation30 בספט׳, 20:12 UTCדווח רק על ידי CBS NewsGSA retained to advise on renovation30 בספט׳, 21:52 UTCRecommendations to curb project costs30 בספט׳, 21:52 UTCPromise of a full renovation audit30 בספט׳, 21:52 UTCGSA reporting arrangements30 בספט׳, 21:52 UTCDuration of the internal investigation30 בספט׳, 21:52 UTCLength of the inspector general report30 בספט׳, 21:52 UTCדווח רק על ידי PBS NewsHourJustice Department investigation into Powell30 בספט׳, 22:29 UTCכל שורה היא הטענה כפי שתיעדנו אותה מהדיווח של אותו כלי תקשורת. הושווה נכון ל-1 באוקטובר 2026 בשעה 06:12 UTC.
