Fed Renovation Project Cleared of Wrongdoing After Investigation
The Federal Reserve's nearly $2.5 billion renovation project has been scrutinized for potential misconduct, but an independent watchdog agency has found no evidence of wrongdoing.
According to a report released by the Office of Inspector General (OIG), numerous factors contributed to the significant construction cost increases, including inflation, limited subcontractor bidding, substantial design changes, and site conditions.
The project's approved budget climbed from $1.32 billion in early 2020 to $2.38 billion by the end of 2024, with the construction segment alone more than doubling in that time.
Former Fed Chair Jerome Powell was warned last year that he could be fired amid allegations of fraud linked to the project, but the OIG's report found no reasonable grounds to believe that a violation of federal criminal law had occurred.