Fed Renovation Costs Surge $1.1B Amid Mismanagement Scandal
A recent report by the Federal Reserve's inspector general has found that the central bank's $2.4 billion renovation project was broadly mismanaged, resulting in significant cost overruns.
The review, which was requested last year by former Chair Jerome Powell, detailed how multiple errors by the Board of Governors drove up the cost of the overhaul.
According to the report, the board failed to establish a comprehensive expenditure estimate before starting work or set a maximum total cost, allowing contractors to absorb inflationary pressures when expenses surged after construction began in 2022.
The report noted that 'the Board has not effectively managed and executed its ... contract and repeatedly deviated from its cost-management provisions.'