Fed Renovation Project Mismanaged, No Criminal Wrongdoing Found

The Federal Reserve's internal watchdog has released a report stating that the central bank broadly mismanaged its $2.4 billion building renovation project, but did not find any evidence of criminal wrongdoing.

The inspector general's investigation found that the Fed's Board of Governors and staff made several missteps that inflated the cost of the project, including failing to secure a comprehensive cost estimate at the beginning of the project and not setting a maximum overall cost.

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.

The report was requested by former Fed Chairman Jerome Powell after criticism of the project mounted in Congress and by President Donald Trump's Justice Department, which investigated whether Powell had committed perjury during testimony about the renovation.