No criminal wrongdoing in Federal Reserve building renovation, watchdog says, but it was mismanaged
Summary
The Federal Reserve's internal watchdog reported that the renovation of a Fed building was badly managed but found no criminal wrongdoing. The renovation cost rose because the agency did not plan the budget well and did not set a firm cost limit, leading to higher prices during construction.Key Facts
- The Federal Reserve spent $2.4 billion on a building renovation project.
- The Board of Governors did not get a full cost estimate before starting construction.
- They also failed to set a maximum budget, which could have helped control inflation-related price increases.
- Prices went up after the construction began in 2022.
- The inspector general said the Board did not manage the contract well and often ignored cost control rules.
- No criminal wrongdoing was found in the report.
- The review was requested last year by Federal Reserve Chair Jerome Powell.
- The report was detailed in a 120-page document released by the inspector general.
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