Fed Watchdog Finds Widespread Mismanagement in $2.4 Billion Renovation Project

The Federal Reserve's internal watchdog has released a report finding that the agency broadly mismanaged its $2.4 billion building renovation project, but no criminal violations were discovered.

The inspector general said the Fed's Board of Governors and staff made several key mistakes that inflated the cost of the project, including not securing a comprehensive cost estimate at the beginning of the project.

The report found that prices spiked after construction began in 2022, with costs more than doubling from an original estimate of $921 million to $2.018 billion by December 2024.

Fed Chairman Jerome Powell requested the review last year, and the inspector general's report confirmed widespread mismanagement but no evidence of criminal wrongdoing.