Fed Building Renovation Project Hit with Mismanagement Charges

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

The inspector general found that the Fed did not secure a comprehensive cost estimate at the beginning of the project, nor did it establish a maximum overall cost, which could have mitigated the impact of inflation on construction costs.

Prices for the project spiked after construction began in 2022, with no criminal violations uncovered by investigators. The watchdog's report highlighted various missteps by the Fed's Board of Governors that contributed to the inflated costs.