$2.4B Fed Renovation Project Found Mismanaged, Not Criminal

The Federal Reserve's internal watchdog has released a report finding no evidence of criminal activity in the $2.4 billion renovation project, but rather widespread mismanagement by the Fed's Board of Governors and staff.

The report, which totals 120 pages, details how the Board failed to secure a comprehensive cost estimate at the beginning of the project and did not nail down a maximum overall cost.

This led to inflated construction costs, with prices spiking after construction began in 2022. The original estimate for the renovation was $921 million, but by December 2024, it had more than doubled to $2.018 billion.

The project has been a source of controversy, with former President Donald Trump visiting the construction site last July and criticizing the cost overruns. Trump's Justice Department also launched a criminal investigation into whether Fed Chairman Jerome Powell committed perjury during Senate testimony about the renovation.