The Federal Reserve’s internal inspector general finds no reasonable grounds to believe federal criminal law was violated in a long-running renovation of the Fed’s Washington headquarters, according to multiple outlets. The report concludes there were mismanagement problems and cost overruns, but it does not make referrals for criminal prosecution.
Several sources report that the project, often described as about $2.4 billion or $2.5 billion, suffers from failures in planning and construction management. The inspector general says the Fed’s Board of Governors did not effectively execute key risk-management terms, including steps that could have constrained inflation-related cost growth after construction began in 2022.
Outlets also note the renovation becomes politically charged. Bloomberg and The Washington Post describe it as a flashpoint during the Trump administration’s attempt to pressure then–Fed Chair Jerome Powell. Separately, The Washington Post says a Justice Department investigation into the renovations was dropped earlier this year, and the inspector general’s findings come after that development.
