Federal Reserve watchdog finds no criminal violations for building renovation cost overruns
Also reported by PBS NewsHour
Summary
The Federal Reserve’s internal watchdog found that the agency did not manage a $2.4 billion building renovation project well but did not break any laws. The renovation costs doubled and the project was delayed, but no criminal actions were found after an investigation.Key Facts
- The Federal Reserve’s inspector general (IG) reported mismanagement but no criminal violations in the renovation project.
- The project cost increased from $921 million in 2020 to over $2 billion by the end of 2024.
- The renovation is planned to finish in December 2027, much later than the original mid-2024 date.
- The Fed did not get a full initial cost estimate or set a maximum spending limit for the project.
- A 2023 design change from open workspaces to closed offices caused delays and higher costs.
- Some expensive features criticized before, like fountains and marble, were not the main reasons for cost increases.
- The Trump administration investigated whether Fed Chair Powell lied about the renovation costs, but this investigation was dropped.
- The IG report said no federal criminal laws were broken, so no case was sent to the US attorney general.
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