Fed Renovation Project Found to be Mismanaged, Not Illegal

The Federal Reserve's internal watchdog has released a report on the $2.4 billion building renovation project, concluding that while there were significant mismanagement issues, no criminal violations were found.

The inspector general's investigation, which was requested by Fed Chairman Jerome Powell in July 2025, identified numerous problems with how the project was managed and executed. The report stated that the Board of Governors did not secure a comprehensive cost estimate at the beginning of the project, nor did it establish a maximum overall cost.

This lack of planning led to inflated costs after construction began in 2022, which ultimately more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.

The Trump administration had previously launched a criminal investigation into the project, specifically looking into whether Powell committed perjury during Senate testimony about the renovation. However, this probe was dropped in April after a judge quashed subpoenas issued by U.S. Attorney Jeanine Pirro.