$2.4B Renovation Project Exposes Widespread Mismanagement at the Federal Reserve

The Federal Reserve's internal watchdog has released a report finding no evidence of criminal wrongdoing in the $2.4 billion renovation project, but citing broad mismanagement by the central bank.

The inspector general's investigation was sparked by criticism from the Trump administration and Congress over the project's costs and luxurious features such as water fountains and marble facades.

According to the report, the Fed failed to secure a comprehensive cost estimate at the beginning of the project and did not nail down a maximum overall cost, which could have forced the building contractor to absorb inflation-related expenses.

The construction costs more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024, with the project expected to last until December 2027, long past its originally slated completion date of mid-2024.