Fed's Troubled Renovation Project Exposed: No Misconduct Found, But Deficiencies Identified

The Federal Reserve's troubled renovation project has been under scrutiny for months, and now the Office of Inspector General (IG) has released its findings. The IG found no administrative misconduct in the management of the project, but did identify deficiencies in the way it was managed.

The project, which involved renovating the Fed's Marriner S. Eccles and 1951 Constitution Avenue NW buildings, had a budget that grew from $1.317 billion to $2.381 billion due to various factors such as higher construction costs, design changes, and unforeseen issues like asbestos contamination.

The IG report noted that project management decisions played a role in the cost increases, including not establishing a guaranteed maximum price contract. The Fed also failed to effectively use its outside construction representative or have sufficient internal project governance.

President Trump was critical of former Fed Chair Jerome Powell over the project, accusing him of 'gross incompetence' and threatening to sue him. However, the IG report found that Powell's testimony on the project did not violate any federal criminal laws.