Fed Mismanages $2.4 Billion Building Renovation Project

The Federal Reserve's internal watchdog released a scathing report on Wednesday, stating that the central bank has mismanaged its $2.4 billion building renovation project. The report found that the Fed's Board of Governors and staff made numerous missteps, including failing to secure a comprehensive cost estimate at the beginning of the project.

According to the report, prices for the project spiked after construction began in 2022, with costs more than doubling from an original estimate of $921 million to $2.018 billion by December 2024. The project's completion date has also been delayed until December 2027, long past its originally slated completion date of mid-2024.

The report found that the Fed's decision to change the design of the building from an open workspace to one with mostly closed office space caused a significant delay in the project's design and delayed the Fed from seeking a maximum cost ceiling for the project. The report also stated that the project was transformed into a 'cost-plus reimbursement contract with a pay-as-you-go approach,' which contributed to the excessive costs.

President Trump seized on the report, calling for Federal Reserve Chairman Jerome Powell to resign, stating that he 'can't manage a Building' and should not be allowed to manage interest rates. Senator Elizabeth Warren also weighed in, saying that the report confirmed that there was no basis for continuing an investigation into Powell's handling of the project.