Fed Watchdog Finds No Crimes in $2.4B Renovation Project
The Federal Reserve's internal watchdog has concluded that the central bank mismanaged its $2.4 billion building renovation project, but found no evidence of any criminal activity.
The inspector general's report, released on Wednesday, said that the Fed's Board of Governors and staff made several key mistakes in managing the contract, including failing to secure a comprehensive cost estimate at the beginning of the project.
This led to prices spiking after construction began in 2022, with the costs eventually doubling from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.
The report was prompted by criticism from the Trump administration and Republican members of Congress, who had accused former Fed Chairman Jerome Powell of perjury during testimony about the renovation.
Powell's term as chair ended in May, but he remains on the board until January 2028, preventing the Trump administration from filling another spot on the board.