$2.4 Billion Fed Renovation Project Hit by Mismanagement

The Federal Reserve's $2.4 billion building renovation project has been marred by mismanagement, according to an internal watchdog report.

The Fed's inspector general found that the central bank failed to secure a comprehensive cost estimate and did not establish a maximum overall cost for the project, which led to price increases after construction began in 2022.

President Donald Trump had visited the construction site last July, where he was corrected by Chairman Jerome Powell on his estimate of the project's expected costs.

The inspector general's report also found that a design change by the Fed in 2023 from an open workspace to one with mostly closed office space caused significant delays and additional costs.