Fed's Building Renovation Project Finds Mismanagement, Not Crime

The Federal Reserve's internal watchdog has released a report stating that the central bank mismanaged its $2.4 billion building renovation project, but did not find any evidence of criminal wrongdoing.

The report by the Fed's inspector general found that the board deviated from cost-management provisions and failed to secure a comprehensive cost estimate at the beginning of the project.

The construction costs doubled from an original estimate of $921 million in February 2020 to $2.018 billion by December 2024, with the project expected to last until December 2027, long past its originally slated completion date of mid-2024.

The report also found that a design change by the Fed in 2023 from an open workspace to mostly closed office space caused significant delays and increased costs.