What happened
The Federal Reserve's internal watchdog has concluded that the central bank mismanaged its $2.5 billion headquarters renovation project in Washington, D.C. The project's cost ballooned from an initial $1.9 billion to $2.5 billion due to unforeseen conditions, including asbestos and toxic contamination. Despite the mismanagement, the watchdog found no evidence of criminal wrongdoing.
The Federal Reserve's board approved the renovation project in 2017, with construction beginning in 2021. However, the project's cost-management provisions were not effectively executed, and the board did not establish a guaranteed maximum price for the project. The watchdog's report highlighted deficiencies in the management of the renovation project, including insufficient internal project governance.
President Donald Trump has responded to the report, calling for Federal Reserve Chairman Jerome Powell to resign. Trump also stated that he has asked Attorney General Todd Blanche to study the report and determine the next course of action. The President criticized the renovation project, stating that it is over budget and that the final cost may exceed $4 billion.
