Fed Renovation Project Found Mismanaged, But No Criminal Wrongdoing

The Federal Reserve's internal watchdog has concluded that the agency mismanaged its $2.4 billion building renovation project, but found no evidence of criminal wrongdoing.

The report by the Fed's inspector general cited a series of missteps, including the failure to secure a comprehensive cost estimate and a maximum overall cost at the start of the project.

As a result, construction costs more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.

Former Fed Chair Jerome Powell requested the review last year, and current Chairman Kevin Warsh has welcomed the inspector general's findings, saying that the General Services Administration will take over management of the project.