Fed Mismanages $2.4 Billion Building Renovation Project

The Federal Reserve's internal watchdog has released a report on the central bank's $2.4 billion building renovation project, concluding that while there was no criminal wrongdoing, the project was mismanaged.

The Inspector General's (IG) report found that the Fed's Board of Governors and staff made several key mistakes that inflated the cost of the project, including failing to secure a comprehensive cost estimate at the beginning of the project and not setting a maximum overall cost.

As a result, prices for construction spiked after work began in 2022. The report stated that the Board 'has not effectively managed and executed its ... contract and repeatedly deviated from its cost-management provisions.'

The project was the subject of a high-profile investigation by Trump's Justice Department, which was dropped in April when a judge quashed subpoenas issued by U.S. Attorney Jeanine Pirro.

Powell, who remains on the board as one of seven governors until January 2028, said he would stay on at least until the investigation is complete. The project has been criticized for being luxurious, with features such as water fountains and private elevators.