Fed Renovation Project Mismanaged, No Criminal Wrongdoing Found
A $2.4 billion Federal Reserve building renovation project has been found to have been mismanaged, but no criminal wrongdoing was discovered by the central bank's internal watchdog.
The inspector general's report found that the Fed's Board of Governors and staff made a series of missteps that inflated the cost of the project, which more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.
The watchdog said that key project management decisions transformed the contract into a 'cost-plus reimbursement contract with a pay-as-you-go approach,' which contributed to the excessive costs.
Fed Chairman Jerome Powell had previously testified before Congress about the project, and his testimony was investigated by Trump's Justice Department for potential perjury. However, the investigation was dropped after a judge quashed subpoenas issued by U.S. Attorney Jeanine Pirro.