Fed Inspector General Finds Oversight Failures Behind Renovation Cost Overruns

A $2.4 billion renovation project at the Federal Reserve's headquarters has been the subject of controversy, with President Trump criticizing the project's cost overruns and calling for former Fed chief Jerome Powell's ouster.

The Federal Reserve's Inspector General found no evidence of misconduct by Powell in connection with the project, but did identify oversight failures that contributed to roughly $1 billion in cost overruns.

The report concluded that design elements such as marble and water features did not significantly contribute to the cost overruns, but that a failure to establish a 'guaranteed maximum price' contract allowed costs to escalate.

Fed Chairman Kevin Warsh has promised to follow the report's recommendations on project management and hire an independent auditor to verify accuracy of awarded costs.