$2.5 Billion Fed Renovation Project Cleared of Federal Law Violations

The Federal Reserve's inspector general has concluded that the multibillion-dollar renovation of its headquarters did not violate federal law, although it found 'deficiencies in the management' of the project.

The IG report, released on Wednesday, stated that at no point during their evaluation did they find reasonable grounds to believe a violation of federal criminal law had occurred. The inspector general identified four areas that caused the building renovation costs to surge and issued seven recommendations.

The Fed's chairman, Jerome Powell, had requested an internal investigation into the project, which was first approved in 2017. The estimated cost of the project has risen from $1.9 billion to nearly $2.5 billion, with construction set to be completed in 2027.

President Trump and other critics have referred to the renovations as 'disgraceful' due to their luxurious features, including a private elevator for the Fed chairman and extensive use of marble. However, the IG report concluded that these design features did not materially contribute to the construction cost increases.