$2.4 Billion Federal Reserve Building Renovation Project Found to be Mismanaged, Not Criminal

The Federal Reserve's internal watchdog has released a report on the $2.4 billion building renovation project, finding that while there were significant cost overruns, no criminal violations occurred.

The inspector general said the Fed's Board of Governors and staff broadly mismanaged the project, failing to secure a comprehensive cost estimate at the beginning of the project and not nailing down a maximum overall cost.

This lack of planning allowed construction costs to spike after work began in 2022, with prices more than doubling from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.

The report also found that design changes made by the Fed in 2023 contributed to significant delays and increased costs.