Fed Watchdog Finds Widespread Mismanagement in Central Bank Renovation

The Federal Reserve's internal watchdog has completed an investigation into the central bank's $2.4 billion building renovation project, which was marred by cost overruns and mismanagement.

According to a 120-page report, the Fed's Board of Governors and staff failed to secure a comprehensive cost estimate at the beginning of the project or nail down a maximum overall cost.

The construction costs more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024.

The report found that the Fed's design change from a mostly open workspace to one with mostly closed office space caused a significant delay in the project's design and delayed the Fed from seeking a maximum cost ceiling for the project.