Federal Reserve Renovation Project Found Mismanaged, No Evidence of Crime

The Federal Reserve's internal watchdog has released a report on the central bank's $2.4 billion renovation project, finding widespread mismanagement but no evidence of criminal wrongdoing.

The inspector general's 120-page report identified multiple missteps by the Fed's Board of Governors and staff that contributed to the project's cost overruns, including a failure to secure a comprehensive cost estimate at the beginning of the project.

The construction costs more than doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024, with prices spiking after construction began in 2022.

Fed Chairman Jerome Powell had requested an investigation into the renovation project last July, after it became a high-profile flashpoint in the Trump administration's efforts to pressure the Fed into cutting its key interest rate.