Fed Renovation Costs Soar, No Criminal Violations Found

The Federal Reserve's $2.4bn renovation of its Washington DC headquarters has been marred by cost overruns, but an internal watchdog found no evidence of criminal violations. The report concluded that the Fed's board of governors 'has not effectively managed' the construction project and 'repeatedly deviated from its cost-management provisions'.

The investigation was sparked by criticism from former President Donald Trump, who has been trying to pressure the Fed into lowering interest rates. In June 2025, Trump visited the Fed's headquarters with Jerome Powell, where they had a spat over budget figures.

Initially budgeted at $921m in February 2020, construction costs have ballooned to $2.018bn by December 2024. The project was supposed to be completed in mid-2024 but is now slated for completion in December 2027.