Fed Watchdog Slams Renovation Cost Overrun as 'Deficiencies in Management'

A report from the Federal Reserve's watchdog has found that the Fed's Board of Governors failed to effectively manage renovations to its headquarters, ignoring cost-control safeguards and repeating project management failures from past building renovations.

The missteps did not amount to a violation of law, according to the inspector general. The report was the culmination of a saga dating back over a year, which included President Trump and former Fed Chair Jerome Powell touring the renovations in July 2025.

The renovation project's budget grew from $1.317 billion in February 2020 to $2.381 billion in December 2024, with construction costs more than doubling during that time.