Powell-Era Fed Renovation Project Criticized for Cost Overruns

Former Federal Reserve Chairman Jerome Powell was at the center of an investigation into cost overruns on a US central bank renovation project. The Fed's Inspector General found extensive problems with project oversight, including a failure to follow through on a 'guaranteed maximum price' contract that would have made the contractor responsible for cost overruns.

The report highlighted how the central bank paid $346 million for plumbing and air conditioning on the project, triple the initial estimate. The Inspector General's investigation did not find reasonable grounds for a criminal referral or administrative misconduct tied to the cost overruns.

Fed Chairman Kevin Warsh said he will follow the Fed IG's recommendations on project management and hire an independent auditor to 'verify accuracy and compliance' of all awarded costs to date. The renovation project, which has a price tag of about $2.4 billion, was criticized by former President Donald Trump as wasteful spending.