$2.4 Billion Building Renovation Project Riddled with Mismanagement, No Criminal Activity Found

The Federal Reserve's internal watchdog has found that the central bank broadly mismanaged a $2.4 billion building renovation project, but did not discover any criminal violations.

According to the report by the Fed's inspector general, several mistakes were made by the Board of Governors and staff during the project, which inflated its cost. These errors included failing to secure a comprehensive cost estimate at the beginning of the project and not establishing a maximum overall cost, which could have forced the contractor to absorb inflation.

Prices for construction spiked after work began in 2022. The report did not find any evidence of criminal activity, contrary to allegations made by Trump administration prosecutors.